Reborn in Hong Kong as a Tycoon

Chapter 345 Negotiation Failed
Negotiations between the team headed by Bill Harveys, Vivien Kelly and Doug Gordon with the short side of the British family were not smooth.

The closing price of Hutchison Whampoa on Tuesday was 49.13 Hong Kong dollars, an increase of 28.58% on the day.

Now the stock price of Hutchison Whampoa is close to 50 Hong Kong dollars, so Bill Harveys believes that the price of selling the stock to Henry Cassack must be above 50 Hong Kong dollars, and there must be a premium of no less than 20%.

In other words, the transaction price must be close to 60 Hong Kong dollars.

How could Henry Cassac accept this price? The price they offered was 42 Hong Kong dollars.According to them, they bought a large number of stocks, and there should be a 15% discount. Otherwise, Bill Harveys and the others will definitely suppress the stock price by selling more than 5000 million shares. They only need a 15% discount Not many.

The price difference between the two parties was too large. Although Henry Kessack and the others added 1 Hong Kong dollar later, they still failed to negotiate.

In the view of Bill Harveys and the others, it is absolutely impossible for the price to be lower than 45 Hong Kong dollars. This is the lowest price given by the boss, and it is impossible for them to make a deal below this price.What's more, they can't make a deal at exactly 45 Hong Kong dollars, which just reaches the bottom line of the boss, so what does the boss want them to do?How to demonstrate their abilities?
The first day of negotiations ended like this.

On the next day, Wednesday, the international gold price neither rose nor fell sharply yesterday, and was still consolidating at around 205 US dollars per ounce. The trend of Hutchison Whampoa’s stock price on this day will not be affected by yesterday’s gold price.

However, although the international gold price did not rise yesterday, the Hang Seng Index continued to rise on Wednesday, so that the stock price of Hutchison Whampoa also rose a little today, closing at 50.4 Hong Kong dollars.

The 2.59% increase that day was not a small increase in terms of Hutchison Whampoa's market value of almost 200 billion Hong Kong dollars.

At the price of 50 Hong Kong dollars that day, Henry Cassack and others did not want to suppress the stock price and prevent the stock price from rising.But after they sold 100 million shares and found that there was still no way to suppress the stock price, they chose to give up. After all, they now only have 1300 million shares of Hutchison Whampoa.

Henry Cassack and others are worried, they are worried that a large amount of fund trays will suddenly emerge after they sell a large amount.In the current situation where the market is generally upward, they dare not sell a large amount of stocks, so that the gap between the stocks they have to cover is increasing.

On this day, Bill Hawes and the others did not negotiate with Henry Cassack and the others, because Henry Cassack and the others decided to wait and see for a few days. Of course, Bill Hawes and the others would not take the initiative to negotiate. Said they were in a hurry to sell the stock.

However, on the same night, there was another good news for Hutchison Whampoa, and the price of gold rose sharply again, rising above $210 per ounce.

Even on Thursday morning, Hong Kong time, the international gold price was still above $210 per ounce and did not adjust downward.

At this time, Hutchison Whampoa's investment in gold futures made a profit again. Although the profit was only about 1.5%, it was 15% after ten times leverage, a profit of more than 2000 million US dollars.

Although the profit is not much, but for the market, Hutchison Whampoa's investment has made a profit, and there may be greater profits in the future, and the stock speculation is expected, so this is of course a big plus for the market .

The stock price of Hutchison Whampoa naturally soared that day, and it easily rose to 55 Hong Kong dollars, a 10% increase.But after that, it slowly rose. After all, the market value of Hutchison Whampoa now exceeds 200 billion Hong Kong dollars, and a large amount of capital is needed to participate in order to continue to drive up the stock price.

The international gold price has risen again, and it seems that there is a possibility that it will continue to rise in the future, so Henry Cassack and others couldn't bear it immediately, and once again approached Bill Harveys and the others for negotiation.

However, at this time, Lin Baicheng's minimum price has increased again, and the selling price cannot be lower than 50 Hong Kong dollars.It's normal, as the stock price continues to rise, his minimum price will only get higher and higher. It is impossible for him to accept selling at 60 Hong Kong dollars when the stock price of Hutchison Whampoa rises to 45 Hong Kong dollars, right?He is not a fool.

Bill Harveys and the others accepted the negotiation. It was still the same saying that the selling price should be a 20% premium on the existing stock price, and the asking price was 65 Hong Kong dollars.

Henry Kessack and others are now going to cover 5700 million shares. If they really trade at this price, they will have to pay a price of 37 billion Hong Kong dollars. Although they will not lose so much, the loss will be nearly 20 billion Hong Kong dollars, which they cannot accept.

Henry Cassack and the others were naturally bargaining. This time they were more sincere than last time. After all, they restarted the negotiation this time, so they offered a price of 50 Hong Kong dollars per share.

Negotiations are back and forth. Bill Harveys and the others made a concession and lowered the price to 63 Hong Kong dollars, about a 15% premium.

Henry Cassack and the others still couldn't accept it and continued to bargain.

On the same day, the negotiations between the two parties still failed to conclude, and there was still a large gap between their respective bids.

On the same day, Hutchison Whampoa's closing price was 57.3 Hong Kong dollars, with a total market value of nearly 230 billion Hong Kong dollars, making it the company with the highest market value among listed companies in Hong Kong.

On Friday, the international gold price continued to rise yesterday, but this time it did not rise sharply, only rose by about 1.3%, and the price of gold fluctuated at 213 US dollars per ounce.

After the stock market opened today, the stock price of Hutchison Whampoa plummeted immediately after the initial rise, before touching the price of 60 Hong Kong dollars. The lowest price even fell below the price of 55 Hong Kong dollars, but it rebounded soon Going up, it fluctuates between HK$55 and HK$60, and the amplitude is relatively large.

The reason why the stock price of Hutchison Whampoa did not rise with the rise of the gold price today is because the stock price of Hutchison Whampoa has risen too much in recent days, and there are too many profits in it. The goods leave.

Of course, there are funds to sell and leave. When the situation is improving, of course there are funds to continue to go long. Therefore, the stock price of Hutchison Whampoa is only fluctuating, digesting the previous increase, and there is no unilateral continuous decline.

Bill Harveys and others also negotiated with the short side today, but after Bill Harveys and the others lowered the price to 60 Hong Kong dollars, they stopped reducing it.As for Henry Cassack and the others, they bid 55 Hong Kong dollars, and they also stopped raising the price afterwards. The differences between the two parties are still not small.

Therefore, the negotiations between the two parties have not yet been concluded.

For Lin Baicheng, it is of course good to be able to negotiate and obtain funds as soon as possible, but if the negotiation fails in the end, he has no loss. At most, the acquisition of the United States can mobilize some funds from Galaxy Games.

If it doesn't work, you can also get a loan from the bank. Just using the assets in the United States as collateral can allow Lin Baicheng to borrow a lot of money.

(End of this chapter)