Detroit, Michigan, USA, a luxury room at the Royal Boat Street Hotel

"My dear Mr. President, have you ever heard the saying that you have been bitten by a snake for three years and are afraid of the well rope? If you can't call the shots for General Motors, I think no matter how much we talk about it, Goldman Sachs and Morgan Stanley are only more greedy and snobbish than Merrill Lynch, how can I believe that the day before yesterday will not happen again? Jiang Yelin took the initiative, and his words naturally became more aggressive.

"Uh, Django, I vouch for the President and CEO of General Motors, as long as we can really reach an agreement this time, then General Motors will definitely abide by the agreement and fulfill the agreement, so it's okay, right? Can't you trust me? John Francis Smith Jr touched his handkerchief around to wipe the sweat from his head, and then realized that he was wearing pajamas now, and he didn't have anything on his body, as for his mobile phone, watch, wallet, driver's license key, etc., he had it in the safe in the guest room.

"It's not difficult to show sincerity, let's talk about the price that Goldman Sachs and Morgan Stanley offered you, know yourself and know that you will win every battle, if you don't have this sincerity, I don't think we need to continue talking!" Jiang Yelin's words squeezed Smith into a corner with no way out, and the president of General Motors grinned and said with a wry smile, "Actually, Goldman Sachs and Morgan Stanley have not officially bidd, and my people have indeed talked to each other once, but these guys are darker than you, and they all have exclusive underwriting rights, and the subscription reserve price is only 2.75 per share......"

Smith is talking about the upper limit of the subscription price given by Goldman Sachs, in fact, the lower limit of Morgan Stanley's low price is only 2.25 US dollars per share, Jiang Yelin thought about it when he heard this, and raised his eyebrows and said, "Saturn Automobile's net profit in 92 is 200 million US dollars, right?" If the net assets of 1.8 billion are $1 per share, 1.8 billion shares, 25% of the IPO lower limit, 450 million shares, net income per share is 0.11 US dollars, and 2.75 is 25 times the P/E ratio, which is almost the highest proportion in the average P/E ratio of blue chip stocks, why, Mr. Smith is not satisfied? ”

"Just kidding, I said Django, yesterday GM's stock price asked you to sell short and smash it will lose $1.9 billion in market value, if Saturn can only raise $1.2 billion in listing, then how is it enough, then simply don't go public and pull it down, this is the first time in the world that GM's high-quality assets are taken out and shared with investors, 2.75 per share I definitely can't explain to the board of directors...... What's more, Goldman Sachs took advantage of the fire to rob and asked for underwriting at the reserve price, and the commission for the part exceeding the reserve price went from 10% to 80%, and the listing of Saturn with us was to make a lot of money for Goldman Sachs! Is there such a thing as putting the cart before the horse?! ”

"Mr. Smith, I'm a person, whoever is good to me, I will be good to whom, if anyone can't get along with me, then I will definitely make him unbearable, what is the bottom line of General Motors in the Saturn car listing plan, now please say it bluntly, we are both dressed like this and play hide and seek with each other to play dumb riddles, Saturn's listing plan is imperative for me, if Merrill Lynch can't get this IPO list, things will be very strict, and the consequences will be very strict, don't hide it from you, There's only time left for you to make a choice, and that's all we have for this conversation. ”

Jiang Yelin was cold and gave an ultimatum, Smith's face turned blue and white for a while, and he wanted to leave in an instant, but in the end he sat back on the sofa and muttered, "The bottom line? I'm wearing pajamas in front of you, so what's the bottom line for me? For General Motors, the bottom line is to recover the $2.5 billion invested in Saturn without losing a controlling stake in Saturn Motors, which is my bottom line! ”

"$2.5 billion? That's probably not enough, according to our calculations, only 200,000 production capacity of Saturn cars is not able to become a potential blue chip in the eyes of investors, this year's production capacity will be doubled to 500,000 vehicles, and next year's production capacity will be doubled to 1 million vehicles, in this way, it is also necessary to invest 700 million funds to expand the number of production lines and workers, plus 3 billion funds for the development and improvement of new models, 2.5 billion + 1 billion is 3.5 billion, with the current net assets of 1.8 billion, the total share capital of 1.8 billion shares, if 51% If you have absolute control, the shares that can be taken out for the IPO are 900 million shares, and the offer price is $3.89 per share, no, if you add a 7% commission, the offer price cannot be lower than $4.16 per share, which is a price-to-earnings ratio of 37 times......"

Jiang Yelin's ability to settle accounts has nothing to say, Smith couldn't help but look embarrassed when he heard it, the average price-earnings ratio of blue chips in the U.S. stock market is 25 times in the big bull market stage, and now the price-earnings ratios of the three major automakers are negative because of huge losses for three consecutive years, at this time, Saturn Motors was listed with a price-earnings ratio of 37 times, which is indeed a bit fantastical.

"With a price-earnings ratio of 37 times, I'm afraid that the market and investors won't ......admit it," the president of General Motors said to himself, but Jiang Yelin rolled his eyelids and sneered, "The price-earnings ratio is not a problem, I just want to know, what is the psychological price of Mr. Smith?" In fact, Jiang Yelin's implication is that if you only need to raise $2.5 billion, you can raise $2.5 billion with a 50% share IPO for almost $277 million, plus the cost of brokerage issuance and commissions, $2.96 per share is a reasonable price......

"The minimum financing amount cannot be less than 2.5 billion US dollars, of course, the commission is not included, and General Motors cannot lose its controlling stake, other conditions are no problem, and even additional terms can be added...... Of course, we will give you the exclusive underwriting right when Saturn Motors is listed, but it needs to be underwritten at a price of not less than 3 US dollars, and the 50% shares of the IPO are a total of 900 million shares! Smith's position is the same as before, except that he confirmed the offer price of $3 per share with commissions.

"In this case, the offer price of $3 is a premium of 3 times the net assets per share, with all due respect, Mr. Smith, the current market value and net assets of General Motors are only 1.12 times the premium, and a mere Saturn has to sell at a premium of 3 times, even with the ability of Merrill Lynch, I am afraid it will be difficult to sell it......" Jiang Yelin's cold sentence almost didn't make Smith faint, and the president of General Motors turned pale for a long time before saying,

"Why else would we spin off and go public? Investors should look at the potential and profitability of Saturn Motors after listing, which is the key to investment, growing at a rate of 50% per year for the next three years, and with the increase in net assets and earnings, this premium will soon be lowered, and investing in blue chips is not investing in the future...... "Smith's words can be regarded as restoring the level of president and CEO of General Motors, and Jiang Yelin was just joking with him again.

Then, it is decided, Merrill Lynch Securities exclusively underwrites the IPO of Saturn Automobile, with net assets of 1.8 billion US dollars equivalent to a total share capital of 1.8 billion shares, of which 49% of the shares are used for IPO financing, and the subscription price per share is 3 US dollars...... The commission is 7% of the financing amount, the agreement is initialed tonight, and the two sides will hold a signing ceremony and officially sign the contract after the close of trading tomorrow, no problem, right? My Excellency, President! ”

Jiang Yelin stretched out his hand at Smith, and the president of General Motors hesitated, and finally stretched out his hand, but when shaking hands, this guy couldn't help but add, "Tomorrow is the last trading day of the week, and GM's stock price will close above $60 anyway, no problem, right?" ”

"This is definitely not good, Merrill Lynch will never do anything to manipulate stock prices, and when the time comes, the Securities and Futures Commission will come to the door and will not be able to tell, but my dear Francis, since we Merrill Lynch dare to promise a price of not less than $3 per share to underwrite Saturn Motors, why do you care so much about the stock price of General Motors, you must know that you lost $2.6 billion last year, and you lost $4.4 billion the year before last, and it is normal for investors to vote with their feet to sell your stocks!" When Jiang Yelin said this, Smith was dumbfounded!

"This doesn't work, how can this work? If GM's stock price keeps falling, shareholders will definitely not be able to sit still, and when the time comes, an extraordinary shareholders' meeting will be held to reshuffle the board of directors or something, then I, the president and CEO, will not become a sinner of GM?! Smith was anxious, grabbed Jiang Yelin, and thought to himself, fortunately, he hadn't signed an agreement yet, otherwise he would really have sold the amazing boy in front of him and counted the money for him.

"I said Mr. President, what kind of system do the two men wear in pajamas, the stock price is determined by the market, not by me or Merrill Lynch Securities, investors have confidence in General Motors, they will naturally buy General Motors stocks, if investors have no confidence in General Motors, they will naturally sell General Motors stocks, this thing can't be forced, no one can afford to manipulate stock prices, you look at my eyes, by the way, can you trust these sincere eyes?"

Jiang Yelin asked seriously, Smith scratched his head and slandered me in his heart, I really can't believe you, but Goldman Sachs Morgan Stanley is not a thing, so, let's believe you, at least what you say in pajamas is called a mouthful without evidence, and it is all sincere, and whoever dares to say it will pit anyone? Smith really didn't dare to let the manager of the G3 fund in front of him become his enemy, Nima made GM's market value lose $1.9 billion in half a day, what hurt about this? I really didn't dare to come back for a second or third time.

"Francis, have you thought about it, the amount of funds invested in automotive blue chips in the market will not fluctuate greatly in the short term, in other words, if Saturn Motors goes public, then investors are likely to transfer their positions and exchange their holdings of other automakers' stocks for Saturn Motors' shares, after all, Saturn Motors has a good prospect and does not have the burden of huge pension burdens, so at this time, General Motors' stock price is lower, which is conducive to the listing of Saturn Motors, if General Motors' stock price remains high, then, Investors' funds are likely to be insufficient, and in the end, it will affect Saturn's subscription ......"