Convertible bonds are pure bonds before they are converted into shares, but after they are converted into shares, the original bondholders become shareholders of the company from the bondholders, and can participate in the company's business decisions and dividend distribution, which will also affect the company's share capital structure to a certain extent. Pen "Fun" Pavilion www.biquge.info

Due to the poor management of Commodore (CBM) in the past few years, the company has issued bonds every year, and convertible bonds are one of them.

The minimum face value of Kangmaoda's convertible bonds is US$100, which is issued at a discount, after all, Kangmaoda's credit rating was not high at the beginning, and if it were not for some old Kangmaoda people, it was doubtful whether his convertible bonds could be issued at that time.

At the moment, the old Kangmaoda and the investors who were in the snow at the time of crisis have been rewarded. In the past, no one asked for $80 a copy of Kangmaoda's corporate bonds, and I don't know when Kangmaoda's convertible bonds were a tight seller in the market, and a person named Tom did. Bens's old amiga500 fans are the kind of die-hard fans. He spent most of his savings to buy 600 convertible bonds of Kangmaoda, and after more than ten years, he was basically convinced that Bill was using Apple for the computer and Microsoft for the software.

The convertible bond that he threw under the cabinet suddenly became popular in the securities market. For a month or two, he's watched these bonds go from ... 80、90、100…… 500…… 2000…… Kangmaoda's convertible bonds have been pulled up step by step, and now it is a scene where there is no market.

The total issuance of convertible bonds of Commoda is US$10 million, with a convertible equity of 17. 32%, but the total market value of Commoda convertible bonds in the market is now $200 million, which is equivalent to 17 of Commoda's convertible bonds. 32% of the share capital has been basically repurchased by investment institutions and Kangmaoda Company, so the current convertible bonds of Kangmaoda Company are basically no negotiable bonds.

Kangmaoda's convertible bonds have been sought after by market investors in the past two months, and in the stock market, its performance is also leading the market, achieving a rise of 1,400% in 60 days, and the market value has soared from about $40 million to more than $500 million.

Similar to the Commoda company is the Microsoft Group. Historically, due to the release of windows95, Microsoft's market value was more than $50 billion this year, but Microsoft's stock price fell because of the emergence of the Palm Fun operating system, but it also had more than $40 billion, which is a world away from the market value of today's popular Commoda.

At present, there are too many people in the market who are optimistic about Kangmaoda company, of course, as a shareholder of Kangmaoda company, even if they are not in the financial industry, they also have views on the current prospects of the company.

But now that someone only wants to spend 10 million dollars to get shares in a company worth nearly $100 million today, or even billions of dollars in the future, these Kangmaoda antiques are not in a good mood.

There are two ways to deal with convertible bonds: 1. Convert the bonds into ordinary shares of the company at the price agreed upon at the time of issuance. 2. Compulsory redemption of bonds.

The reason why the shareholders of Kangmaoda who were present at the meeting were silent is also because these investors are indeed too TMD to take advantage of it. As for the second plan of compulsory redemption of bonds, it is not so easy to implement, because mandatory redemption of bonds means offending Buffett and the terrible background of the man sitting in the corner, the Morgan consortium.

Mark. Hamburg, Mitz. Thomson attended the shareholder meeting with a smile on his face all along, as if it was not their fate that was being discussed, but rather a casual spectator. However, the two of them did not pay attention to the facial expressions of the other shareholders present on the surface of calmness, as long as Kang Maoda refused, with the status, power and prestige of the two on Wall Street, it was absolutely impossible for Kang Maoda to go around.

"Morgan Stanley and Berkshire are very welcome to join Commoda. However, as for the conversion price of convertible bonds, I personally think it is debatable. ”

Finally, after waiting for nearly 10 minutes, a small shareholder couldn't help but stand up and fired the first shot.

"Yes! A few dollars per share we're losing too much! Now that the stock price has risen more than ten times, reaching tens of dollars per share, this conversion price should be discussed. ”

"The conversion price must be re-discussed, otherwise the ...... of compulsory redemption of previously issued convertible bonds will be initiated"

"It will definitely not work according to the previously negotiated transfer price......

"Yes! The convertible price on this agreement is too low to be suitable... Not suitable ......"

……

After listening to it for so long, Mark Hamburg was not silent, and asked directly: "Then how many dollars do you think is the right conversion price?" Don't forget, we have spent several times, ten times, more than ten times the price of the convertible bonds in our hands! ”

"Mr. Mark thinks how much conversion price is appropriate?" Kangmaoda's shareholders may not be stupid, but they are definitely not smart enough, and Jamila has to go into battle on her own, after all, she is not only a CEO, but also a minority shareholder thanks to employee equity incentives. It's a matter of choosing a balance, so how much does Mark Hill think is the right price? Please also be clear. ”

"$13 per share! I think the price is very appropriate. I wonder what President Jamila thinks? ”

"fuck..."Jamila greeted Mark Hamburg in her heart, and said quietly on her face: "Mr. Mark shouldn't ask my opinion, I'm just a part-time worker, hehe......"

"I think $13 is a pretty good price." Morgan Stanley's representatives followed suit to express their opinions.

Mark Hamburg was frustrated by the Morgan consortium's non-starter behavior, but he was helpless.

Kangmaoda's shareholders at the beginning have broken the jar, since they have offended the two major financial giants, fortunately, they have to work hard to get the best interests for themselves anyway, "13 dollars is impossible, this price is too low." You vampires, when you see the benefits, pounce on them, and then dump our shares in the stock market without any scruples. You people don't deserve God's salvation and you deserve to go to hell. ”

"Yes! The price ......"

"I also think the conversion price is ......"

"That's true......"

……

"Ahem...... Markburger coughed twice, and after attracting everyone's attention, he opened his mouth and announced, "The $13 conversion price we don't think Berkshire is low, after all, it was already at a much premium when it acquired the convertible bonds." Of course, if you tell me that you want to forcibly redeem the convertible bonds, then be ready to accept our Berkshire tender offer! Maybe you don't want to, but that's okay, we'll appeal for a forced tender offer. ”

The shareholders of Commoda here also turned pale when they heard Machamburg's words, just as there is no way to forcibly redeem convertible bonds Berkshire and Morgan, but there is no way for Commoda to make a mandatory tender offer on the stock market. If Commoda wants to resolve Berkshire and Morgan's forced tender offers, it will have to compete with the two companies, but is this possible?