Bradshaw was indeed a little dumbfounded, and it wasn't until Li Xuan nodded again in confirmation that he didn't believe that the other party was joking. It wasn't that he didn't think that his company might be bought in the future, but he never thought about being bought by a company from Hong Kong, where his boss is the richest man in the world.

Although RCA's flagship product, televisions, has a smaller and smaller share of sales in the United States, RCA's market value is still as high as $4 billion. Don't look at Li Xuangui as the richest man in the world, with assets of $7 billion, he only needs to spend a little more than half of his net worth to buy RCA companies.

But in reality, things are far from that simple, although the total market capitalization of RCA is only $4 billion, but if you want to convince shareholders to sell the shares, you must buy them at a premium, and the actual price paid can be controlled within $5 billion, thank God.

And if he wants to raise $5 billion in a short period of time, Li Xuan must sell at least half of the property under his name in order to raise such a huge amount of money. But the Aikang Computer Company, Computer Park Company, Oriental Game Company, Oriental Research Institute, etc., which he owns, are not all tomorrow's stars!

Sell them to buy a TV manufacturer, and it's a TV company that has already sold its LCD R&D project. This kind of stupid thing can only be done by people whose heads have been caught by the door! Could it be that Li Xuan's head has been caught by the door? Of course not, he is very sober now!

According to the analysis of the think tank behind Li Xuan, RCA is recognized by all Americans for its TV and radio products, but in fact, of its $4 billion market value, at least 2.5 billion is counted in his radio and television business. NBC (National Broadcasting Corporation), the first of the three major public television networks in the United States. It is a wholly owned subsidiary of RCA. The television business is worth $500 million or 600 million at most, and the remaining $1 billion is miscellaneous business.

"Mr. Bradshaw. Please don't refuse, I think the future of RCA is in Asia. Only Asia can help restore the glory of this century-old store. Not only does it provide cheaper labor, but its own rapidly growing economy is forming an emerging consumer market after North America, Europe and Japan.

For example, the land we stand on now, which four years ago was a dilapidated fishing village, now has the rudiments of a new city. Red China is embracing the world in a more open way than it has been in the past three decades.

It may not be easy for foreign companies to enter this somewhat closed market, but Hong Kong people with the same cultural background as China are more adaptable and flexible! With China's huge population base of more than 1 billion, it can provide the cheapest human resources and has the potential to develop into a huge new consumer market!

Want to catch the beat of Asia's rise. Integrating into a multinational company from Asia is undoubtedly the best choice. Dongfang Electronics is not a Hong Kong company in the typical sense of the word, but more like an international company with manufacturing plants in and around Hong Kong. Dongfang Electronics' largest market comes from the United States, with a number of important subsidiaries set up in the United States, and R&D centers all over the world.

Dongfang Electronics is a new company, but I am not modest to say that its revenue capacity is several times stronger than that of RCA, an established company, and even compared with the top 10 companies of the Fortune 500 in the United States!

Japanese companies are able to use the Japanese domestic market as a retreat, so they can wage a price war with American companies in the United States without a bottom line. European companies, on the other hand, can use the European market as their backyard. For example, Airbus has the support of the governments of Britain, France and Germany. to compete globally with Boeing, McDonnell Douglas and other U.S. companies.

Dongfang Electronics, on the other hand, is a purely commercial company that relies on technology to rise. Not only is Hong Kong's local market small, but the current chaotic political situation between China and Britain is dragging it back, far from helping it in any way. Therefore, Dongfang Electronics needs RCA's deep roots in the United States. to help it stabilize North America, the largest and most important market!" Li Xuan stared at Bradshaw and said very sincerely.

Although the dinner that day was Lu Qintian's representative of the joint venture picture tube factory, the banquet was set up for Li Xuan and Bradshaw to wash the dust. However, Wu Nanshen, the mayor of the Deep Sea Special Zone, specially came to attend, after all, RCA is also a well-known large group in the United States.

But Bradshaw apparently didn't pay attention to the Chinese cuisine at the dinner. In the eyes of others, he was not in high spirits, and he may have been too tired from the journey. After all, the RCA delegation flew from New York to Hong Kong via Tokyo. I didn't have time to take a break, so I went directly to the factory in Shenhai City to visit and investigate.

The RCA team may not even have adjusted to the jet lag. And Bradshaw also decisively refused the entertainment arranged by Lu Qintian after the dinner. In fact, only Li Xuan knew best in his heart that the chairman of RCA was not because of lack of energy, but because he was shocked by his words before the start of the dinner.

The other party estimated that throughout the dinner, they were thinking about the possibility of Dongfang Company acquiring RCA. After the dinner, Bradshaw really invited Li Xuan to his guest room for a detailed discussion at the first time. That's where he had a long argument before.

Since the late seventies, mergers and acquisitions between American companies have become increasingly active, fueled by the capital market. In the past, companies were very friendly to negotiate and negotiate in good faith, but under the instigation of investment banks such as Morgan Stanley and Goldman Sachs, hostile mergers and acquisitions quickly became the mainstream.

In a traditional bona fide merger, the management of the two parties first agrees on the terms of the acquisition, and then the acquiree submits the details of the agreement to the shareholders for selection.

However, the so-called hostile merger is when the management of the acquiree refuses to acquire the acquisition, and the acquirer forcibly acquires enough equity in the open market to achieve the goal. In such cases, the management of the target party will often react violently, and even if the acquisition is eventually realized, it will be costly.

For example, just last year, Martin Lipton, a well-known M&A lawyer in the United States, invented a poison pill plan for an acquired company.

The specific explanation of the so-called poison pill plan is the equity dilution anti-takeover measure. When the acquirer touches the preconditions set by the poison pill plan (e.g., the acquisition of 20% of the shares), the acquired company will automatically place preferred shares below the market value to ordinary shareholders.

Naturally, acquirers are excluded from the placement plan, so that the equity they have already acquired is quickly diluted. When they want to continue the acquisition, they must pay a premium on the basis of the original stock price to pay the benefits of the company's placement of preferred shares, which greatly increases the acquisition cost.

As a foreign capital, Dongfang Electronics Company wants to acquire such a well-known American company as RCA, which is easy to arouse public opinion. For example, when Sony acquired Columbia Pictures in the future, it was met with huge opposition from all over the United States. Another example is the acquisition of Unocal by CNOOC, which ultimately failed because of the strong opposition of the US Congress.

Therefore, the hostile takeover was never in Li Xuan's plan, and only with the support of RCA's management and their guidance could Li Xuan use lightning speed to cover his ears and complete the acquisition before the US public opinion was hot. Then he can calmly face the next challenges in Congress, the White House and other aspects.

After all, RCA owns the most influential public television network in the United States, NBC (National Broadcasting Corporation). Li Xuan wants the US government and Congress to agree that it will not be easy for such a media group that can have an important influence on public opinion in the United States to be controlled by foreign capital.

And although Li Xuan said so many things before, in fact, the real purpose of the RCA company he acquired was to go to the NBC TV network. In the United States, a country of free speech, the power of the media is the most feared by politicians and business companies.

Li Xuan is not prepared to use NBC to discredit competitors, and it is actually very risky for a foreigner to do so. But he only needs to hold such a media company to make countless cold guns and hidden arrows think twice before launching, so that the Eastern Bloc can really gain a relatively relaxed competitive environment in the United States.

"Li, I don't mean to be offended, but I still don't think Dongfang is capable of acquiring RCA. If you're going to ask our management to work with you to convince the shareholders, it's going to be a complete takeover, and it's going to be a cash buyout! and it's going to be the largest non-oil merger in U.S. history!" Bradshaw said, shaking his head.

A full takeover is an agreement to buy 100% of the shares held by all shareholders, which is much higher than the capital required for a full ownership (50% stake).

Regarding the other party's reminder, Li Xuan did not have any hesitation. He still had a warm smile on his face: "Of course, I know the difficulty of this acquisition, especially since our Dongfang Electronics is still a foreign company! So in the next time, I will keep bothering you and slowly show you the sincerity and confidence of our Dongfang Electronics Company."

I also hope to have an in-depth discussion with you about the pros and cons of mergers and acquisitions for both companies, as well as the future development strategy of RCA!

Bradshaw looked at Li Xuan's confident eyes, and couldn't help but feel a little more good in his heart. At least this shows that the decision was made after careful consideration, and not a hasty act of blind arrogance.

If the other party can convince himself enough reason, Bradshaw is not averse to being acquired. There is a sense of twilight in the current RCA company, and it is also necessary to inject a fresh spring into a dynamic emerging company like Dongfang Electronics! (To be continued......