Chapter 62 Withdrawal of Shares

The market capitalization of Nicholas and Cisco is high, but it does not mean that the capital flow is also high!

Citibank and Morgan Bank refused to take out loans, and with the funds in the hands of Cisco and Nicholas, they could not stabilize Cisco's stock price at all, and Henry knew that Sequoia Capital still had 2.7% of the shares, and if it was all sold, it would be nearly $1.4 billion. Such a big single sale will inevitably cause Cisco's stock price to fluctuate violently, and Cisco must come up with more money to stabilize the situation!

If AOL falls down again, the amount of money Cisco needs will be huge. But it is clear that the AOL will definitely fall into the trap!!

Previously, Cisco had spent a lot of money to deal with the American Online Alliance. In fact, Nicholas and Cisco together have less than $2 billion in funds! In a short period of time, there is no money at all!

"You guys go back to work first, I need to think quietly!"

Henry spent the whole afternoon alone in his office. Indeed, in the bank's view, the market value of Cisco and Nicholas is inflated, and in terms of influence and strength, it is far less powerful than the alliance composed of more than a dozen companies! In line with the principle of putting interests first, Citibank and Morgan Bank's decision seems to be very correct!

Henry can be regarded as having learned the cruelty of the world of capital!

Obviously, the good things that were said before, the backlash is only between changing hands!!

Time passed, and outside the door, John Chambers and others walked back and forth restlessly, always looking at the office door from time to time......

It wasn't until a quarter past five in the afternoon that the door of Henry's office suddenly opened, and everyone turned their heads to look here!

Henry walked out with a blank face.

"Chairman, have you figured out what to do?" asked John Chambers as he stepped forward.

Henry said word for word: "I have decided to give up on the acquisition of MCI for the time being!"

Everyone looked very surprised and looked at each other!

Henry waved his hand to silence everyone, and then said coldly: "Chambers, you write down all the telecommunications companies that are in alliance with AOL, and one day, I will swallow them all!!"

"Yes!!" John Chambers replied with a shudder in his heart. John Chambers then asked, "Chairman, what do we do now?" The top priority is how to deal with Sequoia Capital's sell-off!!

"Let them throw away !!," Henry said coldly, "I want to take advantage of this opportunity to take back all the shares of Cisco!!

No one knows better than Henry how many switches and routers are needed for the development of the Internet! In the future, Cisco's market capitalization will certainly reach hundreds of billions of dollars. Taking advantage of the cheap stock price, Henry doesn't mind taking some back!

Henry walked in front of everyone, and Zhizhu said: "MCI is not so easy to acquire, and they don't want to take MCI in three or five months." And that's enough time for us to raise money!"

After saying that, Henry asked everyone to go home from work. However, John Chambers was left to discuss things!

"Chambers, you are personally responsible for recovering Cisco's shares, remember to seize the opportunity to acquire more shares with limited funds! Now the Nicholas Group, Cisco, and I have a total of $2.4 billion in deposits, and if the company's management wants to invest in it, it can do so! Remember, this time we must get back more shares!!

Henry doesn't know how many people will sell Cisco shares this time, but Sequoia Capital is definitely one, and maybe Citibank and Morgan Bank are also possible!

"Chairman, don't worry, I will ask the most professional team to help us!" John Chambers nodded.

"Well," said Henry, "besides, you should start contacting other banks to see which one would lend us a loan?"

"Okay, no problem!"

……

……

Cisco's stock price has stabilized after a period of turmoil. But it didn't take long for another wave of turmoil to strike, this time more severe, larger, and the longest than the last. Citigroup, Morgan, Sequoia Capital three have sold shares, but in order to prevent the stock price from falling too fast, their methods are very hidden, and they did not sell shares to the previous brain, but a little every day, which is difficult to detect! The trading process is to complete the transaction through thousands of trading accounts, although each account transactions are small, but when added up, the overall number is very huge!

It is difficult for ordinary shareholders to detect the actions of Sequoia Capital and Citigroup and Morgan Bank, but Cisco knows everything about their operations in the stock market!

"They're getting moving......" Henry said lightly, "then we can't do without it, right?"

"Chambers, you immediately spread rumors, saying that Cisco is losing money, or something else, in short, I want Cisco's stock price to fall sharply!! in addition, to poke out Citigroup, Morgan, and Sequoia Capital's massive sale of Cisco shares, I see how they can sneakily cash out and make money!!"

"Okay, I'll do it now!" Chambers nodded.

The next day, major media in the United States began to report many negative news about Cisco, such as a loss of $200 million last quarter, an accident at a certain Cisco factory that caused many casualties, such as a disagreement in the company's management, and a lot of negative news. Then it was reported that Citigroup, Morgan, and Sequoia Capital have all sold their shares on a large scale, apparently ready to "flee", and major media have even listed a lot of data to prove that Sequoia Capital is indeed selling Cisco's shares!!

And Sequoia Capital, Citigroup, and Morgan sold their shares, which in turn proved that those negative news are very likely to be true!

As a result, Cisco's stock price plummeted!!

Sequoia Capital, Citigroup, and Morgan also changed from a dark sale to an open sale, and they suffered dumb losses and lost a lot of money in vain! However, because AOL is shorting Cisco shares, they still make a lot of money!

In the final analysis, the majority of shareholders are still losing!

For Henry, Cisco's market value is reduced, it doesn't matter, he doesn't value it for a while. It's better if it's lower, and it's more conducive to Henry's recouping of the shares! But the shareholders' money is discounted...... Of course, if you are optimistic about Cisco and make a long-term investment, you will definitely make a fortune!

Two weeks later, Cisco's market capitalization had fallen to $31 billion, evaporating $20 billion, but Henry had reclaimed 15.6 percent of his shares!!

After this stock market turmoil, Henry's personal shareholding in Cisco exceeded 73%, Nicholas Group held 7%, Citigroup, Morgan, and Sequoia Capital have all sold off their shares in Cisco, and there is no semi-wool relationship with Cisco since then!

However, neither Cisco nor Nicholas has much money now, and Henry only has $100 million left on hand!

Want to buy MCI, it seems out of reach? (Ask for support!)

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