The Son of Finance of the Great Age

  Chapter 675 The most short squeeze in history (2)

   "You mean, they'll make an announcement soon?"

  Soros' expression became visibly tense, "Or is it an announcement to exercise the right? In this way, our position..."

  Due to continuous selling and buying back, Quantum Fund is currently maintained at around 4.5 billion euros, which is close to half of the entire short-selling Volkswagen Group, precisely because Soros has lent a large number of stocks from Piech himself.

   Now trouble comes all of a sudden!

Thinking that there were only two days of trading time, Soros felt his scalp tingle, "They shouldn't announce it recently, right? Maybe they didn't collect options at all, or they bought the shares of Volkswagen Group through other means. In any case, this worst-case scenario should not happen."

  Even as strong as Soros, he was dumbfounded by the current situation and spoke incoherently, with a strong sense of luck in his words.

"The bread fell on the floor, the side with the cheese must have hit the ground first!" Rodney Jones managed to remain calm, but the pessimism in his tone could no longer be concealed, "Murphy's Law. We should now Thinking about how to end it, if the Porsche family announces this news, the stock price of the Volkswagen Group will definitely rise crazily, and then we must close the position as soon as possible. God, our position is really too big!"

   "Yes!" Soros's eyes flickered for a long time, and finally said so leisurely.

  …

   "We seem to be fooled?"

  On Saturday, German time, Wolfgang Porsche has been feeling a pain in the flesh after the deal with Zhongshi was completely completed. After repeated sleepless nights, he suddenly had a flash of inspiration and realized that there might be problems behind this transaction.

   "30% of the shares, about 120 million shares, is equivalent to a current market price of more than 20 billion euros. He actually sold it to us for a mere 5 billion euros, which is really unreasonable."

  Because of the lack of common sense and the hard work during this period of time, Wolfgang Porsche has become a little nervous, and then he said such words to his financial advisory group.

"Mr. Wolfgang, that's not the case!" A financial advisor named Kohler Haji shook his head with a wry smile, "According to the price on the option agreement, Tianyu Fund needs to buy 30% of the shares at a price of 120 euros." The stock price of the Volkswagen Group. The current market price is around 200 euros, which means that they could get a premium of 9 billion euros, but because of the huge quantity, it is impossible to trade at this price, so he discounted it to 5 billion euros Sell ​​it to us at the price. In other words, we are now taking over this part of the option at a price of 160 euros per share."

   "That's how it is!" Wolfgang Porsche pondered, "5 billion euros really makes me feel bad. When I was negotiating with the other party, did you have any other ideas?"

  Naturally, his implication is that these financial advisors may have failed in their duties. In the final analysis, he still broods over the deal.

"Mr. Porsche, to be honest, there is nothing we can do. You must know that the other party is a top financier, how can there be room for us to negotiate." Kohler Haji could only continue to smile bitterly, "To be honest, the reason why we are in a passive position is that The other party has seen through our determination to control the Volkswagen Group. If we don’t take over, it will basically declare the failure of our acquisition. You must know that the other party has so many options, which means that it is basically impossible for us to raise 50.1% of the shares .In addition, if we take over, we must give the other party a large amount of funds, just like what we are doing now. I have to say that his overall plan is really thorough."

"Are we just sitting like this, with nothing to do?" Wolfgang Porsche became more and more angry. He was very dissatisfied with the answers of these financial advisors, because the loss of cash flow made him very likely to execute these options. Low. To fully implement these 31.5% options, it is necessary to spend close to 20 billion euros of funds. This number was so huge that Wolfgang Porsche couldn't breathe.

"of course not!"

Kohler Haji smiled reluctantly, "Actually, Mr. Zhong is really a foresighted person. He gave us the bargaining chip, maybe he didn't intend to offend the hedge fund that shorted the Volkswagen Group, but for us, there is no such thing Worry, you must know that they are our enemies at present. The current situation is that as long as we announce the positions on hand at the right time, these hedge funds will automatically disperse, or even lose a mess. It’s easy to solve. Even at a certain time, we don’t necessarily need to exercise these high-priced options to buy the right stocks in the market.”

"In fact, there is such an opportunity now. If we announce that we have related options on hand in the last two days, the market will definitely be confused, and as long as we don't announce whether to exercise the option, it will always be a nuclear bomb for hedge funds. In addition, because it is an American-style option, it is certain that hedge funds will not pay attention to this transaction in the future." Another financial advisor said excitedly, "From this point of view, we want to thank Zhong Sir. If the operation is successful, maybe we can make a lot of money."

   "Announce these shares that may lock up this part?" Wolfgang Porsche's eyes lit up, "Can you still solve the problem of liquidity?"

"Not bad!" The trader became even more excited, "If we announce the position tomorrow, 31.5% of the equity in the market will be locked up immediately, plus what we originally owned, and what the Lower Saxony state government owns, the entire market There are basically only a small amount of tradable shares on the market. At this time, in order to close their positions, hedge funds can only buy a small amount of tradable shares in the market by crazy price increases. At that time, the stock price of Volkswagen Group is likely to rise to a high price. Unbelievable price."

"But you've been talking for a long time, but you still haven't explained how we can make a profit from it?" Wolfgang Porsche was disappointed, "What we need is cash, so the hedge fund loses profits, and at most the value of our stocks on hand is even greater." It’s huge. But it doesn’t meet my requirements, understand? What I want is cash, the cash that can buy Volkswagen Group’s low stock price in the future!”

"Mr. Porsche, please don't worry. You may not understand some things. It's actually very simple, because if hedge funds want to close their positions, they will definitely buy at crazy prices, and we can take the opportunity to sell some of the stocks we have on hand." The equity is sold at a high price. In this case, don’t we absorb a large amount of cash?” Kohler Haji patiently explained.

   "We sell?"

Wolfgang Porsche understood immediately, and his face was beaming with joy, but his joy did not last long, and another question appeared, "But the bargaining chips we have worked so hard to absorb, if they are circulated back to the Volkswagen Group In hand, will this affect the entire plan? Also, if we can't sell it at a high price, or buy it back at a low price later, wouldn't we..."

"No, no, no!" After hearing this, Kohler Haji exchanged glances with other colleagues, and several of them laughed, which made Wolfgang Porsche feel a bit baffled, "Mr. Porsche, maybe you don't know , but we have estimated it. During this period, the funds shorting Volkswagen Group shares have far exceeded 5.8%, which is all the remaining outstanding shares in the market. This means that if hedge funds want to close their positions , On the one hand, they want to raise prices crazily, on the other hand, they have no way to close their positions anyway, so they will definitely come to us for help. At that time, we will sell them shares at a super high price. After the delivery is over, the stock price of Volkswagen Group will rise It immediately fell, and we will buy it back at that time. If it goes well, not only will the total number of shares we hold remain unchanged in the two trading days, but we will also earn a large amount of cash.”

   "Is the situation so serious?" Wolfgang Porsche still maintained his usual cautiousness. After looking at a few people, he was still not at ease.

"Of course!" Kohler Haji patted his chest and said, "According to the information fed back from our trading department, the short side has far exceeded the 5.8% scale. You must know that it is only a market maker in Germany. We have already sold 5% of the shares of the public, let alone other securities companies. According to our estimates and calculations, the proportion of total short selling should exceed 10%, which means that we can sell 5% of the shares. "

   "So much?" Wolfgang Porsche was taken aback, "So how much cash can we raise from it?"

"It depends on how crazy the hedge funds are!" Kohler Haji said here, already smiling, "This is a typical long-squeeze. I suggest launching it tomorrow. Because there are only two or three days left for the hedge funds." During this period of time, some European-style options will release liquidity. Although there will not be a lot of it, this kind of liquidity will make hedge funds scratch their heads, because they cannot have more opportunities. As for the future As long as we continue to take in the shares of the Volkswagen Group, I believe it will not be long before this company will be in our pocket."

  Wolfgang Porsche thought and thought, and after his face changed for a long time, he slapped his thigh suddenly, "That's the decision. Immediately draw up a press release, wait until tomorrow to release it, and see what kind of scene it will be."

  He was really looking forward to it, and at the same time, he was terrified, because he thought that the current scene should all be planned by Zhong Shi and others. Although he unintentionally played the role of thug, the other party seemed to treat him very favorably. This behavior of being used as a scapegoat by others and making huge profits made him feel very complicated psychologically.

  In any case, he intends to start immediately to launch a counter-siege against hedge funds.

  …

  Although it was the weekend, Adolf Merkel was still negotiating with bank representatives.

"Unfortunately, Mr. Meckler, we found that the 30 million euros we loaned to your group for turnover was not used in production and operation, but was misappropriated by you to the capital market. I regret to tell you that you have seriously violated the According to the requirements of our contract, we have the right to require you to repay all loans within fifteen working days." A bank employee in a suit and leather shoes and black-rimmed glasses said righteously , "At the same time, in the next three years, your group's credit report will be cancelled. In other words, you don't even want to borrow a penny from our bank."

"30 million euros, right? When the bank opens on Monday, our finance department will deposit the principal and interest into your account." Adolf Merkel curled his lips, not caring at all, and said carelessly, "Our group was Have you been blacklisted? Don't worry, your Hawke Bank has also been blacklisted by us! From now on, our group's funds will not go through any Hawke Bank."

"what do you mean?"

The slightly younger bank clerk immediately panicked, "Mr. Meckler, what is going on? Sorry, sorry, what I said just now is according to the regulations. In fact, things are not inflexible. It just needs a little formality."

"What procedure?" Adolf Meckler's face turned pale, but his words were still cold, "Before this, your complexions were really ugly. Even just now, I had to look at your complexion. People are very embarrassing!"

It was embarrassing, but the real embarrassment was the bank clerk named Werner Bach. He had to say in a low voice again: "In fact, you only need to provide a cash certificate to let us know that you have enough repayment ability. None of this is a problem. Sorry, Mr. Merkel, I was not aware that your group's financial situation has improved..."

   Generally speaking, there are two situations in which the bank pursues loans, that is, the loans are in danger of not being recovered, or the loans are used for other purposes. But as creditors, these are not immutable. If the other party can provide proof of repayment, most of them are still willing to turn a blind eye.

   Adolf Meckler gave Werner Bach a contemptuous look, and did not speak again, but he was extremely disgusted with the bank's pretentious behavior. Over the past month or so, he has actually made a large amount of floating profit by shorting the shares of the Volkswagen Group, and naturally his confidence in speaking has become much stronger.

  At this moment, he already disdains to talk to this kind of low-level staff, because this kind of person will only waste his time, he thought so.

   Thanks to Shihuangtian, Banzhuan Afei, cjjl, the wind waiting for the mooring, for making me think... Wait for the monthly votes from all the book friends! Seeing everyone's enthusiastic support for this book, the author is very grateful. Your support is the author's greatest motivation. I will definitely work harder in the future~

  (end of this chapter)