Chapter 70: Free Lunch
What it's like to be a trapeze, Han Hao can now be said to be one of the entrepreneurs with the longest flight miles in China.
The route arrangement for this trip abroad is to fly from China to the United States, then from the United States to the United Kingdom, and then to Iran after arriving in the United Kingdom, and then from Iran to Australia, and then stop in India on the way back to China, and finally return to China.
After a full circle, the trip around the world is basically completed, which is the price that Chinese companies must pay when they go abroad. Internationalization efforts cannot be achieved only with lip service, but must be achieved with practical actions and hard work.
The acquisition of Jaguar Land Rover is the top priority of China Group at present, and Han Hao went to the United States to communicate with the M&A team, hoping to speed up the negotiation process and strive to win the two major brands as soon as possible.
When he arrived in the United States, Han Hao miraculously found that the progress of the negotiations between the two sides had really accelerated a lot, and he was originally worried that the vast intellectual property patent negotiations would delay the process, but he did not expect that the amount of completion exceeded his expectations.
Why is the progress speeding up when the efficiency of the lawyer's negotiation is the same?
Originally, the number of people participating in the team increased, and the original law firm hired by the China Group only sent 6 people to participate, but now it has directly increased to 12 people. The same is true for the opposing lawyer's team, the number of people has doubled, resulting in a sudden increase in workload.
Wait, according to the practice of charging per head and time in the United States, wouldn't increasing the number of people directly without Han Hao's knowledge lead to a significant increase in consulting fees?
"The fees remain the same, and we provide additional value-added services. ”
The head of the law firm jokingly responded.
Of course, American law firms will not be so kind, the real reason is the impact of the subprime mortgage crisis, they can't get enough business, and a group of staff are idle. In order to maintain the workload, redundant people were sent to projects with tight business, and this was the scene of speeding up the progress.
The sharp decline in the business volume of these high-end M&A teams is enough to reflect the devastating nature of the subprime mortgage financial crisis in the United States.
Compared with the visit to the United States for more than a month, the majority of the American people at this moment have serious expressions, the threat of unemployment looms over everyone, and the national economy is in serious trouble. Despite the Federal Reserve and the U.S. government's ongoing announcements of bailouts, the financial crisis is becoming more damaging and has no end in sight.
Wall Street has embarked on the road of layoffs, and the law firms that provide supporting services have also been affected, and many professional lawyers have been laid off, and it is fortunate for the participants to continue to work in the M&A project of China Group to keep their positions.
Although he was only in the position of a bystander, Han Hao could personally experience the negative harm of the economic crisis to ordinary people.
Which snowflake is innocent in the avalanche?
Watching the TV report of the laid-off employees on Wall Street packing up their personal belongings and leaving, they probably wondered who was responsible for the current bad situation.
During Han Hao's visit to the United States, he routinely had to meet with Ford executives to maintain communication on mergers and acquisitions.
Ford's stock price continued to fall, and consumers voted with their feet amid the financial crisis, moving away from the big three U.S. automakers.
Thankfully, at the insistence of Ford's CEO Muralie, the company received $24 billion in campaign funding from banks, which was enough to support Ford through this difficult period. On the other hand, the old rival General Motors once again exposed huge losses, and slid step by step into bankruptcy.
Mulally was visibly haggard as he had last met, and there had been rumors that Ford was on the verge of bankruptcy due to mismanagement, which put him under a lot of pressure as a CEO. Despite his repeated refuting of rumors and confidence, the media is still unanimously declining.
"Han, I'm glad to see the M&A negotiations speeding up and hope that the M&A will be closed as soon as possible because we need cash to survive the winter.
However, the division of patents will affect our future relationship, so we have to clarify the completion of the transaction. ”
After a brief meeting, Murali revealed that Ford needed Chinese money to save his life.
"Are you interested in selling Volvo?"
Of course, Han Hao's main concern is still Volvo Cars, and Ford's next move to sell Volvo has been widely reported in the media.
With the example of Jaguar Land Rover being sold, can Volvo really be an heirloom?
"It seems that you've gotten a lot of noise in the media, and I can tell you with absolute certainty that the Ford board of directors is not discussing the future of Volvo.
Everything will have to be discussed after the sale of Jaguar Land Rover, and there is no comment on this now. ”
Murali, of course, would not tell Han that he had strongly recommended at the board meeting that the company sell the Volvo brand in order to continue to recoup the funds, but the decision was not approved due to Bill Ford's insistence on staying.
If the subprime mortgage crisis in the United States continues to worsen, Ford will definitely consider selling Volvo, a brand that still has growth potential, as a final step. Volvo has sold more than 450,000 units worldwide, a figure that Jaguar Land Rover cannot achieve combined.
"Our company is about to raise another $4 billion in the Chinese stock market, most of which will be used for M&A projects, and Volvo would be the best place to use the money if you are interested.
If the subprime mortgage crisis continues, you and I must know that asset prices will continue to shrink, and cashing out in advance will be the most rational choice. ”
Murali kept a hand, but Han Hao was also very smart, and he deliberately threw bait to attract the other party. You must know that if you really want to sell Volvo, Zhonghua Group has enough strength to swallow it again, and the earlier it is sold, the higher the bid.
According to the original plan, after negotiating with Ford, Han Hao will leave the United States for the British Isles, and the acquisition of Jaguar Land Rover is already a certainty, and he has to establish a good relationship with the union and even the British government. After all, the subprime mortgage crisis has affected Europe, and Han Hao's trip is to continue to stabilize the morale of the military, in addition to promising not to lay off employees, he also said that he will continue to increase investment.
Unexpectedly, an accident temporarily interrupted his trip, because an American heavyweight said that he wanted to meet Han Hao.
Warren Buffett, known to Chinese, is best known for auctioning off his working lunch for charity, which sold for millions of yuan. It doesn't matter what you eat, what matters is who you are with, and Warren Buffett has such charm as an idol of global investors.
The object who asked Han Hao to postpone his trip for half a day was Mr. Buffett, but this time he took the initiative to invite Han Hao from China to lunch, with the intention of investing in this car company far away in China.
"God, if I really want to fly directly from Australia to the United States in time, you must know that Warren Buffett is the god of war in our financial investment field, and his undefeated record is worthy of my worship and salute!"
Yin Qingxun, who was discussing mergers and acquisitions with DSI in Australia, knew that Buffett was going to have lunch with Han Hao, and regretted not being able to accompany his boss to witness.
"I will take your regrets to Mr. Buffett and tell him that there is a faithful believer waiting for him in China. ”
When Han Hao entered the investment world, Warren Buffett was the pearl on the mountain, and all investors took his creed as a guideline.
But when he received Buffett's invitation, Han Hao was not too excited, maybe he had seen too many big people and big scenes.
It wasn't until Han Hao agreed to invite Buffett to visit China in the future and brought Yin Qingxun with him that he was reluctant to hang up the phone.
Lunch with Warren Buffett is in an elegant Western restaurant near Wall Street, which is suitable for intimate conversations.
Although I have seen Warren Buffett, a spirited old gentleman, in the media, Han Hao only found that the other party was full of red light and full of energy. Even if he is dressed ordinarily, his momentum is different from ordinary people, and his gestures are all Wall Street bigwigs.
"It's a real privilege to save millions of dollars on a single meal. ”
As a junior, Han Hao took the initiative to express kindness, and he deliberately laughed at himself.
"It's not as much as a few million, and it is estimated that this meal will cost less than 300 US dollars, which should be around 2,200 yuan if it is equivalent to RMB.
According to our practice of doing market research, in addition to this meal, I have to pay you a consulting fee. ”
Warren Buffett looked at the richest man in China and responded humorously, which made the atmosphere of the scene relaxed.
"Han, I have studied the growth process of your Zhonghua Group, and you can be said to be a very remarkable Chinese entrepreneur. If there is a Chinese dream, you are an excellent representative of the Chinese dream. ”
Hearing this, Buffett said from the bottom of his heart, Han Hao, a young man, can seize the opportunity of China's economic rise and become the richest man, in addition to his own ability, of course, there will be no less luck.
"I read the news reports on the 'future' pure electric sedan you just launched, and I found it very interesting. I would like to take this opportunity to hear your introduction to it and what is your company's future development plan for new energy vehicles?"
Inviting Han Hao to lunch, Buffett's real purpose is to conduct market research in person.
The performance of Zhonghua Group is very good, but what interests him more is the pure electric car with ternary lithium battery, which is claimed to be mass-produced immediately in the future, which makes Buffett feel that there is great investment value.
"The vehicle adopts a version of the Chinese route improved by Tesla's technology, including the motor, battery and electronic control system, which are all newly developed......
Han Hao spoke very carefully, because he has been investing heavily in new energy vehicles, and listed it as the killer feature of Zhonghua Group's corner overtaking.
When Han Hao explained, Buffett listened very carefully, and he would ask questions to understand special professional words, especially he was very concerned about the commercialization date.
"To tell you the truth, I drive 'Future' between my home and the company when I commute to and from work now, and its performance is very satisfying. I don't dare to say anything about long trips, but there is no problem with short daily trips.
During next year's Olympic Games, at least 1,000 'Future' vehicles will run between the Olympic Village, allowing guests from all over the world to experience China's automotive industry boutiques.
It is expected that in 10 years, this number will increase by 100 times, and it will become one of the preferred means of transportation for people. ”
Han Hao is still very optimistic about pure electric cars, after all, new energy will be one of the main battlefields in the future.
After learning that Han Hao had also acquired a battery factory and was interested in entering the upstream to control the pricing power of rare metal resources such as lithium and cobalt, Buffett said that these were all good news he wanted to hear.
"Han, the first factor I value in investing is the future of the product, and the second is how the product controller is, and your performance is perfectly in line with my expectations.
If I could, I would like to take a 20% stake in China Motor, but of course the timing will be delayed a little. ”
Buffett didn't say it explicitly, but he should also see that there are many bubbles in the stock markets of China and Hong Kong, and it is not a good time to buy now that the stock price is overvalued.
The companies that can be valued by Warren Buffett have all triggered investors to follow, and many companies are honored to have Buffett's investment.
"I'm sorry, I can't agree to this request, because I won't give up my controlling position as a major shareholder, and I don't have that much equity to sell to you. ”
But Han Hao categorically rejected Buffett's application for shares, originally in H shares of China Automobile has 38% of the outstanding shares (30% at the time of listing, and then evolved to 38% through additional issuance and cash), coupled with the upcoming return to the 20% circulation of A shares, China Group's external circulation shares will immediately approach 60%, if Buffett is given another 20%, then Han Hao will not be able to control China Motor.
At this time, he was actually quite envious of the stock setting of "different rights of the same shares" in Internet companies, the stocks are divided into A and B shares, and the voting rights can be divided according to the proportion, and it is not news that up to 1:10. If that were the case, he would be willing to further dilute his shares and retain his right to vote.
China Motor is about to return to the A-share IPO, but Buffett, as a foreign investor, cannot invest directly in the A-share market because Chinese laws and regulations strictly restrict it. In addition, the return of A-shares to raise 30 billion yuan is a measure of the China Securities Regulatory Commission for domestic ordinary investors, and it will not agree to sell to foreign institutional investors like Warren Buffett.
"It's very rare for someone to refuse my investment in person, and your conservatism is beyond my expectations! Then let's wait and see, there will be opportunities for cooperation in the future.
I hope you'll keep it a secret about what we're talking about today, because the media are all staring at me, they're boring. ”
To be honest, there are basically no entrepreneurs who can refuse the investment of the stock god, but Han Hao dares to say no.
Now that the stock market is in a bubble stage, since Buffett can't directly get equity from Han Hao, a major shareholder, he will see if he can save the country with a curve, and in the future, when the stock market falls, he will absorb chips in the hands of the public in the secondary market.
Although he intends to buy shares, he does not want the news to be revealed in advance, attracting many followers.
Knowing that Han Hao actually rejected Buffett's shares, Yin Qingxun was surprised and expressed his understanding, after all, the situation in the stock markets of China and the United States is different.
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