Chapter 218: Selling Lotus Software
Griffiths still had some experience after all, and his initial offer was quickly rebuffed. Pen × fun × Pavilion www. biquge。 The other party said that Griffith and Monsanto would like to cooperate on the sale of Roundup, but Monsanto was not interested in the deal proposed by Dakota Pasta Growers.
"Not interested?" Griffith doesn't believe these nonsense? Now the chemical industry as a whole is sluggish, although Monsanto has the explosive product of Roundup, but it is not enough to support the existing business scale. Otherwise, Monsanto would not have been eager to enter the seed industry.
Although Karim and Seryosha did not make a direct move, they have been keeping an eye on the deal. Because so far, Seryosha has no experience in running an industrial enterprise of Monsanto's size. The company was founded in 1901, 20 years before the Soviet Union was founded, and although it has never been listed, it is one of the top 10 chemical companies in the United States and has a wide range of customers around the world.
Seryosha has always operated mainly in the fields of finance, real estate, agriculture and entertainment. Although Yota Communications is a technology company, it is far inferior to Monsanto in terms of scale and number of employees. Therefore, this acquisition can be regarded as a completely new challenge that Seryosha has never faced in his life.
Seryosha was well aware that he was powerless to change the tragic fate of the collapse of the Soviet Union, which had left the most industrial enterprises like Monsanto. If he wants to have better development in the future, then Seryosha will sooner or later face the test of acquiring industrial enterprises. Therefore, Monsanto can be regarded as Seryosha's first test product.
Griffith quickly told Kalim the news of the refusal, and Karim, with Seryosha's consent, authorized Griffith to pay a higher price, and Monsanto's overall valuation would reach $7 billion, which is already a sky-high price in the current era. At the same time, in order to make the acquisition more certain, Griffith also approached Morgan Stanley, Monsanto's financial advisory firm, to negotiate the deal.
So a week later, Griffith's three companies, Dakota Pasta Growers, Morgan Stanley, and Monsanto, began a new round of negotiations. In order to show his sincerity, Seryosha made it clear that the deal would be paid entirely in cash, which greatly increased the attractiveness of the other party.
But negotiation is like this, the more you follow the other party, the higher the other party's psychological expectations will be. In the face of Griffith's fair price, Monsanto's CEO has remained silent. Griffith knew very well that although the CEO was the leader of the company, he also worked part-time, and the shareholders were the owners of the company. This price must be approved by the board of directors before it can be negotiated.
"Otherwise, Mr. Griffith! We still need to think about your price, and you know that we have a lot of promising projects in our hands, such as our molecular biology laboratory, which has just made significant progress in the genetic engineering project, which is a revolutionary technology that has the potential to disrupt the entire seed industry! However, I agree that you will conduct our due diligence on us, and we will open up some necessary information to you......" Monsanto's CEO responded in a calm tone.
Hearing this, Griffith finally had a reassurance, it seems that this price really moved the other party, after all, having seven billion dollars in cash at once is definitely a good deal, and most people will be satisfied with this price. It was precisely because of the other party's motivation that they accepted the acquisition of Dakota Pasta Growers, because the other party's intention was very clear, you can now inspect the goods first.
"I'm sorry, gentlemen, can I interject?" Morgan Stanley's representative said suddenly.
Monsanto's CEO and Griffith both looked at him and didn't understand what he was going to do. I only heard the representative of Morgan Stanley say unhurriedly: "I have a prospect report of the seed industry here, according to our estimates, the profit of the entire seed industry is about more than 10 billion (2016 data is 37 billion US dollars), we Morgan Stanley does not think that Monsanto's molecular biology laboratory can bring much profit to the whole company, we are more optimistic about the development of your company in the biomedical industry!" Monsanto's chemical business has been on a downward trend for several years, and I hope that your company will consider our analysis and make a decision that is beneficial to investors! ”
Griffiths understood that Morgan Stanley's representatives were trying to persuade Monsanto to accept the deal. This was actually secretly doing Griffith a favor, and Griffith gave the guy a grateful look. In fact, the other party's overtures are also purposeful, and they hope to be able to finance a costly transaction.
In the end, there was some progress in the negotiations, and while Monsanto was still hesitating, Griffith and Seryosha behind him were not idle at all, and Griffith's investigation team soon came to Monsanto to investigate the financial status of the acquisition target. Seryosha, on the other hand, is raising legal funds for the acquisition. At the beginning of the year, Eva bought an office software company called Lotus Software. And this company's product Lotus1-2-3 has been sought after by the market as soon as it was launched, and has become a dark horse this year. Originally, Seryosha wanted to introduce some of the company's technology to the Soviet Union to improve the office automation of the National Housing Bank, but from Seryosha's point of view, the current level of Lotus 1-2-3 is still far behind.
Now Seryosha is a little disdainful of this company, and it happens that the acquisition of Monsanto is now, and Lotus Software is in the limelight, so Seryosha thinks that selling this company at this time is a wise choice. Eva is still one of the major shareholders of Microsoft, and Microsoft has been interested in the company since the listing of Lotus 1-2-3, but Eva's attitude has been to refuse.
"Eva, talk to someone at Microsoft! I don't think it's useful for Lotus software to stay in our hands! Seryosha said Eva, who had come to Vancouver to meet him, for an opportunity.
"But this company is now a star enterprise! And the profitability is not bad either! Eva asked, puzzled.
"I'm more interested in Monsanto now, and the limitations of office software are too great, Microsoft will enter this field sooner or later, it's better to buy them for some cash and shares!" Seryosha explained to Eva.
"Okay, I'll get in touch with them, what is the approximate price in your heart?" Eva said obediently.
"$5 billion!"