Chapter 56: The Citi Scheme

After receiving the news, the Chinese side once thought it was a smoke bomb. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½

Otherwise, their proposal to buy a 15% stake in Rio Tinto's London branch for $12 billion was met with great difficulty and painstaking efforts, and it did not reassure the antitrust investigation departments of the United States, the United Kingdom, Australia and other countries.

At this point, Rio Tinto gave the green light, and was ready to sell all the shares of the largest copper mine in Indonesia, 50% of the iron ore branch, and 80% of the shares of the Western Australian Iron Ore Company to the Chinese side, although the asking price is still a little high, but for the Chinese side that urgently needs to expand raw material resources, the money that can buy things is money, otherwise it is all waste paper.

The commercial department immediately reported the news to the central government, and at the same time sent key personnel to quickly investigate the current operation of the Rio Tinto Group to avoid taking over a hot potato.

After all, talking about conscience with capitalists is heheda.

For the sake of profits, these capitalists can even sell shell companies to the detriment of others, let alone be tempted by huge profits of tens of billions of dollars, so that they can start a war.

"Will, I think you can start negotiations with Orange Technology again, I got some not very accurate information from Yuntong Company, the Board of Directors of Yuntong is going to hold a meeting of all shareholders in the near future, the topic should be to discuss the final agreement with Orange Technology on the terms of review, if we can't get everything done before Yuntong and Orange Technology reach an agreement, then the Board of Directors will reconsider your qualifications." ā€

Capital groups, information society, a lot of news doesn't take a few minutes to make all the people who should know it.

In the United States, a dense financial network of cross-controlled capital investment, Paul, who is a director of the board of directors of Citigroup, is naturally very well-informed.

When Sandwell answered the phone, he was reading a fund rescue permit document submitted by a Wall Street financial institution, and his judgment of the financial crisis became more and more accurate, which also deepened his deep fear, because Citigroup still has tens of billions of dollars of non-convertible bonds, and once the financial turmoil and the real estate crisis worsen, these bonds will be completely junk bonds.

This will greatly affect the level of performance during his tenure at the helm of the company, and in turn, the level of the board of directors that will no longer trust him, which will seriously affect his interests, and after receiving Paul's call, his head is even bigger," Mr. Paul, you must know that no business negotiation can be completed in a few days and weeks, according to our estimates, the total amount of projects between Orange Technology and Amex is as high as hundreds of billions of dollars, which may be the largest long-term financial services cooperation in the world so far, and they will not reach a complete agreement in a year or two. ā€

But I have to regret to tell you that for a mountain of gold that everyone can see and touch, the capitalists will also pay attention to efficiency. Paul said coldly, and even muttered on the phone that damn it, damn it and something like that, which shows how bad his mood is now, "You have to know that Orange Technology has proven to be profitable just by taking it out now, and even the practical technology that has been produced on Intel is so valuable." And Orange Technology itself, how huge its potential is, this is a gold mountain that cannot be proven to have total reserves, and the revealed part alone is enough to exceed the total reserves of any gold mine that has been discovered in the world, do you know what I mean?"

Sandywell became serious at this time, he understood all these truths, but what Paul wanted to tell him was not this, but that some of the capital giants behind him had begun to become anxious, and they were worried that this gold mine would be taken away by others first, in that case, Citigroup would not face a loss of a little, but a loss of an opportunity to double Citigroup's development.

What a crazy plan this is, an emerging technology company with annual revenue of only about 10 billion US dollars, but can continuously develop several gold mining technologies worth tens of billions of US dollars, plus those that have not yet been put into production, this is probably a personal know, the future of Orange Technology is limitless, and even it will surpass Microsoft and Google in market value in the future, it is only a matter of time.

Even in the U.S. capital community, among the wealthy groups who have paid attention to Orange Technology, some people openly shouted that once Orange Technology is listed on the U.S. stock market in the future, it will become the first giant company in human history with a total market value of more than $1 trillion.

Although there are not many people who approve it, it is enough to see the common optimism of the rich class on Orange Technology if a sober-minded billionaire can openly shout this sentence.

"Okay, I will immediately notify Orange Technology to restart negotiations between the two sides. Sandywell didn't want to argue with Paul on this issue, but he had to make a question, "But I have to know how much initiative the company has given me, and I have learned through some friends in China that the relationship between Orange Technology and the upper management is very good, and in China, this company can get the unconditional support of their big state-owned banks anytime and anywhere, so the services of our financial institutions in China have lost their original attractiveness." ā€

"Of course, we had to give something before we could get something good that everybody knew, and this time, they agreed that we would give something, after all, it would be good for every shareholder to expand the company. Paul quickly opened a notepad on the other end of the phone, turned one of the pages, and said quickly, "In two days, I got in touch with the company's largest 11 fund investments, and after analyzing the future of the cooperation between the group and Orange Technology, they decided to give up a different number of company shares to show our sincerity, and are ready to hold a plenary meeting of the board of directors at the beginning of next month to adjust the company's strategy on the progress of the negotiations, and decide whether to issue additional shares to attract Orange Technology to complete the cooperation." ā€

"That's great, but can you tell me how much authorization I can get under the premise of this cooperation?" Sandywell was happy on the surface, but according to his own understanding, this group of capitalists would rather use other means to force Orange Tech to reconcile than spit out the benefits they have received.

Sure enough, Paul's previous words were only used to stabilize people's hearts, and it was only after Sandywell's repeated questioning that he told the truth, "The 11 funds unanimously decided, plus the original authorized part, I have collected a total of 1.82% of the company's shares." ā€

"What? This, my God, Mr. Paul, I have to be pessimistic about the prospects of the negotiations, because Amex is offering fifteen percent of the shares, which also includes twelve percent of the voting rights, which is almost the equivalent of a controlling position, you know?" Sandy Weir patted his forehead, and his confidence was half gone.

Paul smiled a little embarrassedly, "Of course I know, so after my hard work, these funds and the major shareholders behind the scenes decided to change the nature of the 1.82% shares, they also enjoy lovely voting rights, but do not include the company's major issues of decision-making, and the heads of these 11 funds revealed to me that at the shareholders' meeting at the beginning of next month, they decided to increase their holdings by more than 2% to reach a bargaining chip for cooperation with Orange Technology." And even if the number doesn't meet expectations, they'll expand it again at the year-end meeting, so you're satisfied, right?"

"Well, I'll do my best to make this collaboration happen. Sandyville didn't have any hope for this collaboration in his heart, because he knew exactly what kind of people were behind him.

1.82% of the shares, but oppose Orange Technology's entry into the decision-making level, which is tantamount to creating obstacles to cooperation, because Citi has not shown any sincerity.

As for the two subsequent so-called expansion of equity and the issuance of additional shares to increase the bargaining chips of cooperation, it is even more deceptive, and Citigroup has been unable to deceive others with this trick in the past 20 years.

First, the cooperation is reached through the so-called high share attraction target, and then the actual number of shares held by the other party is reduced by increasing the total amount of shares.

Of course, in the cooperation before the commitment to share expansion, Citi usually signs a commitment with the target company to expand the preemptive right of shares in the future, but this priority is not exclusive to the target company, under the operation of dozens of funds holding Citi, these companies have the same preemptive rights, in other words, the target company is not able to fight the deep-rooted large fund that has been in charge of Citi for many years.

Orange Technology didn't even need to inquire too much, only needed to learn the inside story through the American technology companies it cooperated with, and he couldn't imagine how he would face the other party's questioning.

"Maybe they're planning to use other means to force Orange Tech to succumb. Sandywell can only think so, but it is good that without paying too many core interests, being able to pull such a powerful ally into the Citi alliance will have many benefits for Citi itself.

Citi's actions continued, just a day after they issued a decision to restart talks with Orange Technology.

Li Mubai received a call from the capital, and he was still an old acquaintance of his own, "Director Gong, why did you call me personally." ā€

Gong Ziqian, director of the National Development and Reform Commission, a key department of the state, called, and after receiving the acquisition request of Rio Tinto Group, the state conducted a comprehensive investigation of the situation through several channels, and finally figured out the original situation.

It turns out that this is a normal business cooperation involving the two countries and four parties, but its target object is Orange Technology, a very sensitive company, which makes the upper management have concerns, after all, the future of Orange Technology can be seen clearly, this is a leader in a very key field, and in the future foreseeable days, it will be in the lead or even a monopoly position for a long time.

This is equivalent to an additional anchor for the overall national strategy, and I believe that the term Orange Technology will be constantly mentioned when negotiating with foreign countries.

Now Citigroup wants to reach an exchange of interests with China through Rio Tinto's iron and copper mines in Australia and Indonesia, in order to seek the interests of the American branch of Orange Technology, as well as the overall financial packaging service of Orange Technology overseas.

In particular, Huaguo Bank, as a super bank dedicated to expanding its core business overseas, has been seeking strategic cooperation with multinational companies in business, but this plan has been shelved for a long time because most of the previous Chinese companies were in a disadvantageous position in overseas competition.

Now that an influential large company has finally emerged, they certainly do not agree to push Orange Technology out to help foreign banks grow and seize market share that should belong to them.

However, the palm of the hand is meat, and the back of the hand is also meat, and at the moment when China's economy is developing by leaps and bounds, the source of raw materials, especially energy and mineral raw materials, has always been the top priority of the national strategy.

According to the current information, the reserves of copper and associated iron ore in Indonesia are second to none in Asia, and their taste is quite high, which is a strategic resource that the country urgently needs.

The Western Australian Iron Ore Company controls dozens of iron ore producing areas, large and small, and its total proven reserves can supply the needs of the entire Chinese iron and steel enterprises, and there is still a surplus.

In particular, the origin of these two major iron ore areas is not far from China itself, especially Indonesia, which is a strategic resource coveted by China, it is no exaggeration to say that with the origin of these two major resources, China will change from the current disadvantageous position to a dominant position in the foreign negotiations of the industry, and even dominate the price of iron ore imports, which will save the country billions of dollars every year.

More importantly, at the level of national strategic security, raw materials, especially the steel industry, will no longer be controlled by others, and will develop completely independently and soundly.

That's why Gong Ziqian personally called Li Mubai here.

"I believe you also know the inside story of the whole thing, we called this time, mainly to ask for your own opinion, if you have any doubts, raise them as soon as possible, and we will discuss and solve them. Gong Ziqian is actually very optimistic about the prospects of this cooperation, but Orange Technology is not a national enterprise, and they have no right to interfere with its normal operation, so they can only ask for coordination and cooperation, which is somewhat embarrassing.

Li Mubai thought for a moment and said very bluntly, "In principle, I am very much in favor of this cooperation, but at the business level, I will force Citigroup to give up some ideas that should not be there, and I will not refuse this cooperation unless it is necessary." ā€

"That's good, your attitude is very good, I will report it truthfully. Gong Ziqian said approvingly, and then exchanged views with him on some specific things.