"What? This is too harsh. The impact of the poison pill plan is difficult to eliminate. You have to think clearly." Hua Ximeng raised her head suddenly with a surprised expression on her face.
Poison pill plan, also known as equity dilution anti-merger strategy, is an anti-takeover measure that increases the cost of mergers and acquisitions of acquiring companies, causing the target company's merger attractiveness to rapidly decrease. The poison pill plan will not take effect in normal times. It will only be activated when the company faces the threat of merger and acquisition.
When a company encounters a hostile takeover, especially when the acquirer's shareholding has reached 10% to 0%, the company will issue a large number of new shares at low prices in order to maintain its controlling stake. The purpose is to reduce the proportion of stocks in the hands of the acquirer, which means diluting the equity and increasing the acquisition cost. The purpose is to prevent the acquirer from achieving the goal of controlling the shareholding.
There are many ways to implement a poison pill plan. One is to incur a large amount of debt, such as redeeming stocks in large quantities and repaying all loans immediately. In short, there is no money on the books and you still owe others a lot of stock debt, even if you acquire it. , we will face this big hole soon; or we sign a collective job-hopping agreement with the company's senior managers. As soon as you acquire the company, we will all leave collectively immediately, etc. . .
Once the poison pill plan is adopted, it will have at least two effects: first, it will have a deterrent effect on hostile acquirers; second, there will be fewer acquirers interested in companies adopting the plan.
It is not that there are no cases of poison pill plans in China. A certain wave group, which was famous for its Weibo social platform, was once targeted by one of the top interactive entertainment media companies in the country named Mousheng. The certain wave group was forced to a dead end. A poison pill plan was adopted, and in the end, a certain Sheng had no choice but to give up the acquisition plan.
Of course, there are advantages and disadvantages. The poison pill plan can preserve the ownership of the company, but it also has its disadvantages. This is a way to kill one thousand enemies and lose eight hundred to oneself.
First of all, the poison pill plan is not conducive to the increase of the wealth of the company's original shareholders. It is considered to be a way for management to retain its control over the company, causing management to sometimes ignore the interests of other shareholders.
Secondly, the poison pill plan increases the management costs and expenses of the target company. The company needs to allocate funds to implement the poison pill plan. On the one hand, it is to correct the company's bad operating conditions and improve the company's governance; on the other hand, it is also to hinder the acquirer's acquisition behavior. .
Furthermore, the implementation of the poison pill plan lowers the corporate governance rating and creates a bad impression to the outside world that the company is protected at all levels, affecting the company's financing, reducing the company's value, and reducing other investors' desire to invest in the target company. The reputation and other interests of the target company have been reduced.
Finally, the poison pill plan is not conducive to the free circulation of company capital. It not only hinders acquirers from acquiring the company, but also hinders ordinary traders from trading the company's capital. It not only hinders hostile acquirers, but also hinders transactions by bona fide purchasers. This is not conducive to the company's formation of sufficient funding sources and expansion of fund-raising channels, and ultimately is not conducive to the company's long-term development.
Mu Qianxue naturally understood the pros and cons, and said helplessly: "I also know it's not good, so I said that I won't use it unless it is absolutely necessary. But if it comes to that step, in order to retain the ownership of the company, I can only Do it! Time is running out. Don’t look at those shareholders who are still hesitating now. Maybe someone has reached a verbal agreement with the other party in private. Moreover, Mu Qing is definitely not on our side. I really I don’t want to watch my parents spend their entire lives making wedding dresses for others! Or, Mr. Hua, do you have a better idea?”
"It's not impossible, there is no perfect path." Hua Ximeng comforted.
Mu Qianxue smiled and didn't take it seriously; "I know what Mr. Hua means. You want me to invite the knight in white, right?"
In a hostile takeover, the white knight and the black knight are opposite concepts. Usually, in order to prevent the hostile takeover, the company's management looks for a "friendly" company to merge with, and this "friendly" company is called "White Knight".
Responding to hostile mergers with higher prices creates a situation where third parties compete with hostile acquirers to bid for the target company. In this case, the hostile acquirer must either increase the acquisition price or abandon the acquisition. Generally speaking, if the hostile acquirer's bid is not very high, the target company has a greater chance of being rescued by a "white knight." If the hostile taker proposes a high bid, the cost of the "white knight" will increase accordingly, and the target company's chances of being rescued will be small.
To put it bluntly, when someone wants to take over your company in a hostile manner, hire a master to raise the price with him and increase the opponent's acquisition cost, which is similar to a "trust" at an auction. This trick is more effective when you are not determined to win, or when the opponent is not strong, but this approach is obviously "prefer friends to domestic slaves", and inviting the "white knight" is not in vain!
However, when the tree falls and the monkeys scatter, the wall falls and everyone pushes back. Although the Mu Group is also famous in the business world, when faced with such a life-and-death crisis, all the original partners and so-called friends shrank their heads. People dare to speak out.
Even if there was, Mu Qianxue would not dare to agree hastily. You know, generally speaking, the acquisition of a "white knight" supported by management has a high chance of success. Who knows whether the other party will turn into a black knight
"Mr. Hua, you also know that with Mu's current situation, who else dares to play the role of this white knight? Ordinary small companies simply do not have such sufficient liquidity, and those who meet the requirements are not experienced in the market. Old foxes, their true colors may not be much better than each other." Mu Qianxue smiled helplessly. A good woman cannot make a meal without rice. There are actually many ways to break the bear hug, but no matter what method, enough money is an indispensable condition. But now, what Mu Qianxue lacks is money. Without money, all operations are empty talk.
"Hey." Hua Ximeng sighed. She had to admit that what Mu Qianxue said was true. After hesitating for a while, she suddenly gritted her teeth and said with determination: "Mr. Mu, I don't care about other people's affairs. No, but at least I can take care of myself. Ximeng Group and I are willing to take on the white knight this time, so don’t worry, I won’t offer any excessive conditions.”
Mu Qianxue was stunned and looked at Hua Ximeng in a daze. She never expected that Hua Ximeng would be willing to play this thankless role. At the same time, she felt a little bitter in her heart. She naturally understood what Hua Ximeng was. For whom would she be willing to wade into this muddy water? However, she did not expect Hua Ximeng to do this for Qin Hao.
"No need, Mr. Hua, you have already helped me a lot. I was not in the company before, but you are willing to help. I am really grateful. But this time, there is really no need for you to involve yourself. The opponent is the golden partner. , I checked their information. This company has been infiltrated by many internationally renowned chaebols and investment groups not long ago, and the controller and board of directors have changed. If they are really determined to acquire Mushi, Even Ximeng Group cannot compete with those capital giants, it will only drag you down."
Hua Ximeng opened her mouth, wanting to insist a little longer, but she couldn't deny Mu Qianxue. After all, Ximeng Group was not hers, and if she wanted to help, she couldn't just say it.
Is there really nothing we can do
Just when the two of them were looking at each other, there was a sudden knock on the office door, and someone outside the door reported: "President, there is a man downstairs who claims to be Director Qin's friend and asked for a meeting. Do you think?"
Qin Hao's friend? Mu Qianxue and Hua Ximeng looked at each other and then said, "Let him come up."
Soon, a sound of footsteps came from far and near, and the door was opened. A young man wearing gold glasses, a silk suit, and long black shawl hair led a group of mixed men and women. People with all foreign faces walked into Mu Qianxue's office.
"Hello, I am Mu Qianxue, the president of Mu Group. Who are you?" Mu Qianxue stood up and reached out to the long-haired man and asked.
The long-haired man took a step back, not intending to shake hands with Mu Qianxue, but bowed slightly and said softly: "Hello, sister-in-law, my name is Glasses, and I am the financial officer of the boss. We already know about the Mu Group. The boss said hello to me, so as soon as we received the notification from Sister Fei, we immediately flew over overnight."
As he spoke, he pointed to a beautiful woman with an oriental face next to him and said, "This is my companion, her name is..."
"My name is Xiaoxiang, and I am the leader of the Six Paths of Reincarnation Group." The woman did not let the glasses continue to introduce her. She directly interrupted her and took a step forward to look at Mu Qianxue expressionlessly: "I have been summoned by King Meng to help. Eliminate the crisis in the Mushi Group!"
PS: There are still updates, please don’t rush me. Chu Xin fell ill today, with severe stomachache and crazy diarrhea. The weather has suddenly warmed up recently. You guys should also pay attention to your health and don’t sleep with the air conditioner on all night, otherwise it will be easy to be like Chu Xin. Catch a cold. . . .
PPS: Thanks to "APP_64616", "Youth has no regrets, uncle", "Little Dolphin_5609", "Weilei Real Estate Consultant", "APP_099760" and other children's flowers, and thanks to "Little Dolphin_0795" for the 188 reward. Yeah. . . . . . . . . . . . . . (To be continued)