The Son of Finance of the Great Age

  Chapter 671 The undercurrent is raging

  Ferdinand Piech's board of directors has not yet ended, and an unexpected big man came to visit him. The person who came was George Soros.

   "It is said that your internal preference shares are 40 euros per share. Is this news true?"

  In Piëch’s spacious office, Soros just greeted him briefly and explained his intentions, “We want to help you resist the takeover from Porsche.”

"Are you helping us or taking advantage of the fire?" Piëch's originally enthusiastic face suddenly turned cold, "I have heard of the reputation of your vulture fund, and I know what Mr. George has done, saying that he helped us. , I can't believe it either!"

In the past few months, there have been rumors about the acquisitions of Volkswagen Group and Porsche Group by hedge funds. Several European fund managers have come to visit Piëch, including Insman, Blevin Howard, Blue Bay Well-known hedge funds such as asset management. Using various excuses, they hoped to be able to borrow stocks from public shareholders to short.

  Soros was more courageous than them, and directly approached Ferdinand Piech, and used the slogan of defending the Volkswagen Group.

  At this critical juncture, Ferdinand Piech naturally does not want more shares of the Volkswagen Group to flow into the market, because this is like delivering a knife to the Porsche Group. So after Soros said his intentions, the smile he had originally pretended to disappear immediately.

"Mr. Piëch, I know you have concerns in your heart. After all, now is an extraordinary time." Soros is no one, just glanced at Piëch's face, and he understood what he was thinking, "You can rest assured, we are not The barbarians at the door are not those idiots at Deutsche Bank. Although we are not a buyout fund, our experience in takeovers and anti-takeovers is no less than that of any professional in the world.”

   In order to prevent being acquired, the Volkswagen Group hired a team from Deutsche Bank as a financial advisor. Porsche, on the other hand, hired the team of Raymond Brothers, and although Raymond Brothers is now protected from bankruptcy, the work of this team continues.

   "Really?" Piëch's attitude was still very cold, "How can I trust you?"

"This is very simple!" Soros took a document from Rodney Jones beside him and delivered it to Piëch, "This is our transaction document in Frankfurt, which records in detail that we shorted The stock price position of Volkswagen Group, the number of short options held, etc. It can be said that this is definitely the top secret of Quantum Fund, and I will share it with you to show my sincerity. In addition, there are some forward contracts in which we short Porsche , are all inside."

"What does it mean?"

Piëch took the document, glanced at it roughly, and threw it aside without studying it in detail, "Since Mr. Soros is already in front of you, please explain it carefully. To be honest, for these jargon-filled I really can't read the file."

  Although he didn't continue to read, the accompanying staff quickly picked up the document and began to read it seriously. These are professionals from Deutsche Bank. Although they are dissatisfied with Soros' belittlement of them, they have no chance to speak at this time, so they can only suppress their dissatisfaction in their hearts.

"It's very simple!" Soros looked at the busy staff of Deutsche Bank, did not comment, and explained to Ferdinand Piech, "Porsche's intention to acquire the Volkswagen Group is well known, and they have prepared for this After several years, the determination is beyond most people's imagination. It can be judged that if it is not the last moment, they will not give up their coveting of the Volkswagen Group."

"The question now is, for the Porsche Group, do they intend to close at 50.1% or at 75%. If it's 50.1%, they're not very far from that goal. If it's 75% , then they still have a long way to go. In any case, the stock price of Volkswagen Group in the market has deviated far from its proper price, which will absorb a lot of cash from Porsche Group. According to our judgment, if they attract 5% of the shares, their existing cash flow will be completely consumed, including the 12 billion euro loan from the bank."

"When the Porsche Group has no more cash to absorb chips from the market, they will be forced to announce the failure of the acquisition. This is the underlying reason why hedge funds are optimistic that this acquisition will fail." Soros finally concluded with high spirits, "The stock price The rise has far exceeded their expectations, or exceeded everyone’s expectations. Under such circumstances, it is impossible for Porsche to complete the acquisition, even for a 50.1% holding. Therefore, we believe that at the current high When it comes to stock prices, it is not a problem to take the opportunity to sell part of the stock and buy it back when the Porsche acquisition fails, or even take the opportunity to hold Porsche.”

"Hearing what you said, it seems to make sense." Piëch pondered for a moment, then said slowly, "It is impossible for us management to sell the stocks in hand at this time, so you put your calculations on us. on his head, is that so?"

"Yes, that's right!" Soros said without hesitation, "Because the market maker doesn't have many shares on hand, we can only turn to you for help. This is definitely a good opportunity to quickly consume Porsche's cash. Because Frankfurt’s market rules say you can’t sell short, so that’s what we have to do.”

"But what can we get?" Piëch tilted his head and thought for a while, then whispered to the financial advisor for a while, and his expression gradually calmed down, "We get nothing except a certain amount of interest. We're very unfair, very unfair. Look, vulture funds are making a lot of money and we're taking the risk, it's not worth it."

"Of course, we have also considered this point!" Soros showed a clear look on his face, "10% of the profit, in addition to the interest, and we will pay 10% of the total profit to the provider. I believe that Mr. Piëch will not refuse the conditions, right?"

   "10%?" Piëch frowned slightly, did not answer, and subconsciously glanced at the think tank behind him. After several financial consultants from Deutsche Bank exchanged glances quickly, a handsome blond young man said: "50%, plus the market price pledge of the full equity, if you agree, you can draw up the contract now. "

  The so-called market price pledge means that Quantum Fund gives the same amount of cash or other pledges according to the market price of the lent shares. The purpose of doing this is naturally to prevent Soros from "betrayal." You know, no one can be trusted at this time, especially when it comes to key stakes.

  The wishful thinking of Deutsche Bank consultants is that even if Soros turns around, they can use the price of the pledge to obtain enough cash in the market to buy back these shares. There will be a few hiccups, but if Soros's whole plan is successful, it will be insignificant at all.

   "At most 20%, I need 2.5% of the equity." Although Soros expected that the other party would be difficult, he did not expect it to be so difficult. After taking a deep look at the consultants of Deutsche Bank, he took a step back, "I think this condition should be very generous. As for the pledge, there is no problem, but the interest will be gone."

"For a 30% share, we provide 2% of the shares. This is our bottom line. It is impossible to provide more shares." After whispering with the consultants for a long time, Piëch finally made a decision, "There is no way to have more shares." If there is too much equity, any more may jeopardize the management rights of the current management.”

"25% share, 2.5% equity. If possible, we can draw up the contract now." Soros knew that he could not demand too much on the shares, so he could only further increase the share ratio. "We will make a list of pledges as soon as possible. I hope we can cooperate happily!"

   "Happy cooperation!" Piëch happily extended his hand.

  …

  Almost at the same time, the Porsche family reception finally reached its climax. During the intermission of the courtesy social activities, Schwartz Porsche walked to the front of the stage.

   "Ladies and gentlemen, friends from the press, welcome to the celebration reception organized by our family today to celebrate the abolition of the "Public Law" by the European Court of Justice." He first delivered a speech, and then entered the topic,

"It is well known that the "Public Law" is not a law that guarantees fairness and justice. I am surprised that such a law still exists in a country like ours. Odd. Fortunately, after two years of hard work, this law has finally been repealed and the free market has opened up to us even further.”

"I believe that this is good news for both the Volkswagen Group and the Porsche Group. Here I must clarify that for the acquisition of the Volkswagen Group, our Porsche Group is from the perspective of operation and management. Yes, it is not a hostile takeover as advertised by the outside world.”

"So far, we have acquired 42.6% of the shares of the Volkswagen Group. This figure is real and accurate. In the case of acquiring so many shares, whether to proceed according to the original acquisition plan, or to change the strategy and no longer seek Volkswagen Group The controlling position of the group has caused some controversy within us."

  As soon as he finished speaking, there was an uproar at the scene. The reporters and guests who came here naturally wanted to know the latest progress of Porsche's acquisition of the Volkswagen Group, but now they heard the news that the Porsche Group might give up. How could this not surprise them!

"Of course, the result of the controversy has not yet appeared, but when there is a final result, we will definitely announce it to the public." Schwartz Porsche still had a smile on his face, and confidently said to the audience. Unheard, "Before that, we still hope to maintain a good cooperative relationship with everyone here, the news media and even the Volkswagen Group. Thank you for coming, please enjoy this wonderful evening to the fullest."

   After finishing speaking, he ignored the swarming reporters, smiled and floated away surrounded by bodyguards.

  …

   "This little bastard, who do you want to lie to?"

Like Ferdinand Piech, Adolf Meckler was also watching the reception of the Porsche family. When Schwarz Porsche hinted that the Porsche family might give up increasing their stake in the Volkswagen Group, he smiled coldly and casually held The beer glass was thrown out.

   "Who doesn't know about your family's mess? Don't say anything else, just plan for so many years, how can you just give up? Are you really playing everyone like a fool?"

  As a representative of the local German consortium, Adolf Merckle knows the details of the Porsche family. Coupled with his understanding of Wolfgang Porsche's character, he concluded that this was a trick played by the Porsche family, otherwise a worthless fourth generation would not have been announced.

   "This time, I want to make a lot of money!"

   Adolf Meckler gritted his teeth with a ferocious expression on his face. After the last time he had a bad relationship with Zhong Shi, he was still worried for a long time, but after so long, he hadn't seen the other party take any action in the capital market, so his heart gradually relaxed.

Now his family business is at a critical juncture, because the bank consortium has tightened loan credits, which has caused VEM Holding Group to fall into the plight of insufficient cash flow. For this reason, he is looking for loans everywhere, and at the same time turned his attention to the capital market, Porsche and Volkswagen Group. For him, the acquisition is a rare opportunity to earn cash.

   There are still many people who have the same idea as him!

   Thanks to book friends Flying Elf, Qi Le Le Wu Wu, xxcan, making me think, Romantic Snail for voting monthly! Thank you book friend Mu Xiang for your smooth and secretive rewards!

  (end of this chapter)