Chapter 159 Equity Issues
"Huh?"
Reading the intelligence information he had just gotten, Tang Bao's brows couldn't help but furrow.
"Boss, is this information fake...... " Seeing Tang Bao's expression a little complicated, Winnieburg couldn't help but ask nervously, but he got the intelligence information with 100,000 US dollars. If it is fake, the loss of money is a trivial matter, but it will be a fool of Tang Bao in front of him.
Even, it will affect the boss's recognition of his ability.
"Fake...... Not really. It's just a little different from what I expected! Tang Bao put down the information, raised his head and said with a light smile.
"Oh?"
Winnieberg wondered.
Robert and Nick, who were sitting on the sofa opposite, were also very curious about what was on the intelligence information that would surprise the boss.
"Heh, judging from this information, some shareholders of FirstWisconsin International Bank are not willing to sell their shares directly, but want to exchange shares."
"Share swap!"
Winnieberg, Nick and the others all cried out in surprise.
"Yes, it's a share swap. Initially, First International's proposal was for a cash acquisition, but the board of directors of First Wisconsin International Bank was not interested, so negotiations continued in a cash-plus-share swap manner...... And the share swap part accounts for one-third. Tang Bao said leisurely. His idea was the same as Cincinnati's original idea, which was to buy it for cash.
Pity.
Now it seems that if he proposes to buy it in cash, it is possible that FirstWisconsin International Bank will not give him a chance to continue the talks.
"Forehead ......"
Winnieburg and the others stopped talking, and East West Bank was wholly owned by Tang Bao, and they did not speak on the major issue of equity change.
"Huh? Why don't you speak? Tang Bao looked at the three of them and asked in surprise.
“……”
Winnieberg, Nick, and Robert looked at each other a few times. In the end, Nick, who is most familiar with Tang Bao. Stood up and said.
"Boss, the issue of equity ......"
"Heh, it's nothing, just say it." Tang Bao smiled kindly, he just wanted to hear his opinions, as for whether he would take it, he naturally knew in his heart.
"Hmm."
Nick relaxed slightly, was silent for a moment, and said: "Equity swap mergers and acquisitions are also very common in the United States. The most important thing is that you can save money on acquisitions. If you don't mind splitting up your stake in East West Bank, that's a good idea. ”
"Boss, East West Bank's shareholding structure is single and too risky. And when it reaches a certain point, it will face bottlenecks......"
Vieneberg reminded.
"What about Robert, do you think so?" Tang Bao's gaze stayed on Robert's body and asked with a smile.
"Yes, boss."
Robert replied without any hesitation.
"Hmm."
Tang Bao nodded lightly. Nick and the others are right, he can control East West Bank as he pleases, without any constraints. However, it also faces various problems.
Originally.
Tang Bao thought of today when he established East West Bank and then took control of East West Bank through East West Holdings. It is impossible for East West Bank to rely on Tang Bao to move forward on its own, especially if it expands to a certain extent, East West Bank may encounter various development bottlenecks and bring in some investors in due course. It can effectively compensate for this. Tang Bao's unhindered global expansion with 100% control of East West Bank is unrealistic. Whether it is a government or a capital institution, it is impossible to let Tang Bao act so recklessly.
Development to a certain stage. There will always be some capital forces that want to come over and get a piece of the pie. However, this is not an absolute bad thing, and the other party will contribute to the development of the company while sharing the cake shop.
East West Bank has brought in some powerful partners, and when they get some equity, they will naturally be tied to the interests of East West Bank. When East West Bank is in trouble, it also takes action. For example, when East West Bank bought a bank, it faced political obstacles that Tang Bao could not solve, and one of the shareholders of East West Bank had a very close relationship with the government, and the intervention of this shareholder might be able to solve this trouble.
Arguably.
The decentralization of equity will tie more and more elites to the chariot and contribute to the development of East West Bank. Equity dispersion is often accompanied by the expansion of resources.
He knows that eating alone will not last long. Even if you can be strong for a while, there is no guarantee that it will last a long time, because too many people will think about you. Therefore. Tang Bao did not have any resistance to diversifying the stake in East West Bank, and he had been prepared for it for a long time.
Of course.
There is also a premise for equity dispersion, that is...... Tang Bao can still control East West Bank as he pleases, and no one can threaten his controlling position!
If you work hard to build East West Bank, but in the end you are pinched by others, and you lose the right to speak, it will become a joke.
"Huh. Seeing that you are cautious when talking about East West Bank's equity, is that exaggerated, I don't seem to have said that East West Bank shares will never be allowed to flow out, right? Tang Bao said with a smile.
"Forehead ......"
Winnieberg, Nick and the others were all stunned, and after thinking about it, they didn't seem to have mentioned it.
"Boss, you're saying that East West Bank's shares can be dispersed and will accept other investors?" Winnieberg asked in surprise.
"Of course!"
Tang Bao replied affirmatively.
"Whew...... If that's the case, that's great. When I first joined East West Bank, I heard that the boss controlled 100% of East West Bank, and I felt that there were a lot of irrationalities in this approach. It's just that for some reason, I can't say it, for fear of being misunderstood by the boss! Boss, on the premise of ensuring absolute control of East West Bank, the dispersion of equity is a good thing for you and East West Bank. Winnieburg said sincerely.
"Not bad. The most intuitive effect is that it can save the boss a lot of money! Robert chimed in.
"Hmm."
Tang Bao agrees very much. The existence of East West Bank does consume too much money, and this time, if he buys FirstWisconsin International Bank in an all-cash way, I am afraid that his funds will be almost consumed. If you use the method of share exchange, you can solve a lot of funds.
……
"Hmm. Maybe East West Bank will soon have a new shareholder, Robert, and that's going to be a big test for you. Tang Bao reminded.
"Uh, boss. I'll try! Robert was a little stunned, and suddenly realized that the new shareholder joined, which means that East West Bank is about to set up a board of directors, and if Robert, as the president, cannot be recognized by the board of directors, then there is only one final outcome, abdicate and make way for Xian.
Robert was self-aware and aware that he might not be able to keep up with East West Bank's development, and he was prepared for it.
……
FirstWisconsin International Bank's share exchange conditions. didn't scare Tang Bao, he still insisted, after all, after swallowing FirstWisconsin International Bank, East West Bank will have a qualitative leap.
Make a decision.
Tang Bao's mood also became relaxed.
"Boss, since you claimed to acquire FirstWisconsin International Bank, there has been a lot of opposition from the outside world. I'm afraid it won't go so well this time! Nick said.
"Hmm."
For this, Tang Bao had already expected the small savings and loan banks he had acquired before. will be frequently criticized and hindered by public opinion. Not to mention a huge bank like FirstWisconsin International Bank, to be honest, Tang Bao is not sure of winning this time.
No way.
With Tang Bao's pattern, it is not yet possible to influence the decision of the US government.
……
Saying.
After all parties have made relevant preparations. Intensive acquisition negotiations were held with the top management of FirstWisconsin International Bank.
Through a few days of contact.
FirstWisconsin International Bank also initially identified some targets, but to the anxiety of Feitner and the board of directors, Tang Bao and the relevant executives of East West Bank did not make any moves.
"President Fittner. Don, why didn't it show up? A certain director said anxiously that he had great expectations for Tang Bao.
“……”
Feitner shook his head helplessly. These days, he is secretly negotiating with all parties, how can he have time to pay attention to others, and how can he know the reason why Tang Bao did not show up.
"Why don't you send someone to ask?"
"No!"
Feitner anxiously stopped, secretly scolding the idiot, the director in front of him wanted to hug Tang Bao's thigh and wanted to go crazy, even such a stupid thing could be said.
Forehead.
The director who made the suggestion was startled by Feitner's strong tone, and soon realized that something was wrong, so he could only bury his head in embarrassment.
Tang Bao did not show up, and Feitner could not wait forever, and launched intensive acquisition negotiations with other parties for several days.
Soon.
Some buyers voluntarily withdrew because they could not accept Feitna's terms. In the end, only the Bank of America, Washington Mutual, Wells Fargo, Rice Fund, and Mitsubishi Bank remained, and unexpectedly, in the face of many powerful competitors, First International Cincinnati did not have any intention of backing down, gritted his teeth and persevered!
Call.
The sudden withdrawal of so many banks and institutions was also somewhat different from Fittner's expectations, especially the Sycamore Tree Investment Company, which he was optimistic about, only conducted one tentative negotiation and withdrew directly. It seems that I just came around and didn't have any sincerity to talk about it in detail.
Fiitner's envisioned scenario of "fierce competition between the parties and the profit of FirstWisconsin International Bank" did not come to fruition.
Of course.
What made Feitner most depressed was Tang Bao, who said that he would participate in the acquisition, but now there is no voice, and it seems that he is about to withdraw before he starts talking.
……
"Hey, I'm Fettner." He couldn't remember the number of calls he'd received lately, and Feitner had lost his initial excitement.
"Ah......" "Hmm." "Okay, this afternoon, yes!" ……
Suddenly.
Fettner suddenly became energetic. (To be continued......)