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Chapter 582

After the CA company's stock price was suppressed, it did not improve. Peter Fei's task was basically completed, and Xiao Zhumei did not run to him anymore and stayed at home to take care of her children.

Fu Song's dad's life was finally over. He originally wanted to be a tour guide for Yan Yuan Dynasty and visit the colorful world of New York.

However, Yan Yuan Dynasty was a practical person. He didn't even reverse the jet lag and couldn't wait to work.

This time, nearly 40 people came to the company. The cost of living in the United States alone is not a small amount. Although it is not the money from Yan Yuanchao, he saw it and felt ache in his eyes and wanted to break it into half in one minute.

Lao Yan worked so hard that Fu Song, the capitalist, was helpless and had to agree reluctantly.

On November 8, the results of the election were released. Lao Bu won 426 of the 538 electoral votes, far more than half of the 270 electoral votes, won the 1988 election, and won quite beautifully. Unlike his descendants 32 years later, a general election made the country messy and made the whole world laugh.

Wall Street is undoubtedly one of the happiest interest groups for Lao Bu's successful election. They look forward to Lao Bu's ability to continue to relax financial controls after he takes office.

Ideals are beautiful, but reality is skinny. Only one night later, the next morning, an article in the New York Times entitled "Who Should Be Responsible for This Savings Crisis" caused an uproar.

"…Whatever you think, these numbers are shocking. Last week, the Federal Housing Loan Banking Commission said it would pay $1.35 billion to liquidate two bankrupt loan associations in California. It will use 40% of the existing funds on the books of the deposit insurance fund, and the bleeding did not stop it..."

In fact, this article in the New York Times is only the tip of the iceberg. The impact and losses caused by this incident are much greater than when the newspapers began to realize the problem.

In particular, the article mentioned that experts estimate that the crisis may lead to the largest government aid operation ever, which costs $20 billion to $70 billion.

At this time, in order to unite my younger brothers to fight the Red Soviet Union, there are moral integrity and lower limits, and we should not be afraid of it. So although the US dollar is no longer US dollars, it is really valuable. At least US$20 billion in aid is enough to make American taxpayers dumbfounded.

In fact, the US Savings and Loan Association crisis has long been full of signs, one of which is that US Treasury yields tend to be inverted. If not handled properly, it can easily lead to an economic recession.

The stock market is the barometer of the US economy. In the next few days, the Dow Jones Index fell below 2,000 points. This is the first time since the stock market crash last year that the Dow Jones Index fell below 2,000 points.

Merrill Lynch’s acquisition advisory team suggested that Fu Song immediately launch a tender offer for CA, and Fu Song also thought the time was right, so the two sides hit it off and took action immediately.

As the acquisition entity, OT began to plan to acquire CA's stocks in the open market, and its shareholding ratio quickly exceeded 10%.

Immediately afterwards, OT officially announced a tender offer to CA company, but this news could not cause any ripple under the halo of the big cross-century acquisition case of Reynolds Nabeske.

After all, CA is just a "small company" with less than $3 billion. No, it has fallen below $2 billion now, and its market value is less than a fraction of Reynolds Nabesque. The media is full of various news about Reynolds Nabesque bidders. The CA company acquisition case can only be helplessly settled in the corner.

However, this is the result that Fu Song hopes to see the most. He doesn't want to attract too much attention. It is the king to make a fortune in a quiet voice.

On the other hand, the acquisition of Reynolds Nabesque has reached a critical moment. Less than 4 days before the formal bidding, Credit Suisse First Boston came late and submitted an acquisition proposal that even Fu Song, an honest man, was very angry.

First Boston Bank intends to use installment notes to buy Reynolds Nabeske's food business, and then auction the food business, and 80% of the income will be distributed to shareholders of Reynolds Nabeske, and the remaining part will belong to it; and then buy the tobacco company for $15 billion.

The reason why Boston Bank proposed such an acquisition proposal was to exploit loopholes in the internal tax law that will be abolished on December 31 this year, that is, using installment notes to delay the payment of bills for 10 or 20 years, thus saving $4 billion to shareholders, equivalent to $17.4 per share.

Logically speaking, if First Boston Bank can "think" about shareholders like this, shareholders such as Fu Song should be grateful to him and agree immediately.

But no one is a fool. Even Fu Song, the second financial knife, can be seen. First, Boston's intentions are so sinister that it is beyond his authority.

This plan, which seems to maximize shareholder interests, contains many major speculations about federal tax policies, and its feasibility is difficult to determine.

Fu Song, a foreigner, knows that he can be fooled by anyone in the United States, but he must not be fooled by the Federal Taxation Bureau.

But this is just the first Boston Bank’s suggestion, and the final bidding plan will only be announced on the day of the official bidding.

On the day of the official bid, there were four plans to participate in the bid for the Reynolds-Nabesque acquisition, management and its investment consultants Lehman Brothers, KKR and its investment consultants Morgan Stanley, Merrill Lynch, Dresel Burnham Lambert, First Boston Bank, and the "White Knight" Firman.

Fu Song's most optimistic view is naturally KKR's acquisition plan, but his starting point is different from other shareholders. Other shareholders want more new company stocks, and KKR can be given 25%. Fu Song does not care about the new company's stocks at all. The reason why he agrees with this plan is that this plan pays more cash, and it would be better if KKR could pay all the cash.

Conservatively estimated that his investment in Reynolds Nabesk's profit margin exceeded 100%. After the acquisition is completed, he can not only get nearly $1.8 billion in cash, but also obtain nearly $500 million in new company stocks.

He didn't want Reynolds Nabeske's stock at all, because the acquisition has put the large industrial enterprise in heavy debts and will definitely drag down the company's profits. Moreover, under Lao Bu's governance in the next few years, the US economy will be in a mess, otherwise he would not be zippered off the throne of president in four years.

Therefore, Reynolds Nabesk is actually a broken ship with cracks at the bottom of the bilge. Sooner or later, it is better to get off the ship as soon as possible.
Chapter completed!
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