Chapter 675: Target Shift
The eyes of European capital are focused on the stock market in New York, although this has delayed the plan of Australasia to buy the bottom, but it is not necessarily a bad thing.
After all, there are still a lot of companies worth starting in Europe, and taking advantage of the fact that all European countries are in the United States, it can also facilitate Australasia's acquisition in Europe.
Of course, such an acquisition would certainly not be hidden from the British. Arthur didn't intend to hide it from the British, after all, British capital is not something that the current Australasia can compete with.
As a result, most of Australasia's operations in Europe are located in Germany, with a small number of other small and medium-sized countries in Europe, and almost no acquisitions in the UK.
It was also a quid pro quo between Australasia and the UK, with Australasia not participating in the London stock market in exchange for UK support for Australasian acquisitions in Germany and other countries.
Arthur's first target for acquiring a German company was the BMW Group, which was currently experiencing serious problems in the capital chain.
The BMW Group is very well-known in later generations and is also one of the famous BBAs. BBA is actually the abbreviation of BMW, Mercedes-Benz and Audi.
At present, Australasia already owns Mercedes-Benz, and if it can own BMW, the three major cars will have more than half.
Of course, the Audi AG is also among the acquisition targets. However, compared with BMW, which has serious problems in the capital chain, it is more difficult to acquire Audi.
On 1 May 1927, Australasian intelligence officers successfully visited the BMW Group and met with those at the helm of the BMW Group
Franz-Joseph Papp.
Of course, what BMW is good at today is not cars, but engines used in aerospace.
Ten years ago, the engine factory that bears his name by Carl Friedrich Rapp (founder of BMW) became famous in Bavaria for its high-performance engines.
In the course of ten years, the engine factory merged with Gustav Otto Aerospace Maschinenfabrik and Bavarian Aircraft Factory, and became known as BMW.
However, in 1917, BMW's founder, Rapp, had to sell his shares and leave the market because of the overexpansion of BMW, which led to poor management.
Rapp's stake was also taken over by the Austrian financier Franz-Josef Papp, and it has remained so until now.
Representing the Crown Consortium in the acquisition is the Head of Crown Affairs, David.
On a sunny afternoon, Franz-Joseph Papp and David met in a conference room at BMW and had a long conversation.
Franz-Joseph Papp was obviously prepared for the arrival of Chief David, and even knew the intention of Chief David's arrival.
Manager David also went straight to the point and directly expressed his desire to acquire BMW.
Franz-Josef Papp was obviously stunned when he saw such a direct David director, but he still tried to fight for his own best interests: "David David, you know, BMW is the largest engine factory in Bavaria, and the aircraft engines it produces once set world records.
Although we are currently experiencing a crisis in the capital chain, the company's market value has not decreased much. It's not that I disagree with Mr. David's acquisition proposal, but out of consideration for the interests of the company, I would like to ask Mr. David to give me a more suitable offer. ”
Not much different from the intelligence gathered by the intelligence services, Franz-Josef Papu would not object to the takeover of his stake in BMW.
After all, Franz-Josef Papu is an Austrian, and the Vienna stock market has also suffered a lot of shocks, and Franz-Josef Papu should have lost a lot of money in the Vienna stock market, which is the real reason why BMW has suffered a capital chain problem.
And, of course, there was a significant drop in order volumes as a result of the collapse of the German economy. BMW's current main business is engines, and the use of engines is nothing more than military and civilian.
The German government was suffering from enormous restrictions, and naturally it was impossible to study the aircraft anymore. It is also impossible for the German people to engage in aircraft experiments in times of economic crisis, which makes BMW, which has lost foreign orders, face serious losses, and bankruptcy is already a matter of time.
Now that he knew the details of Franz-Joseph Papp, Chief David naturally did not rush and replied with a smile: "Of course it is, Mr. Franz. Out of respect for the interests of both parties, I believe that the acquisition should be carried out slowly to ensure that the interests of either party do not suffer significant losses.
If you wish, we can conduct a three-month survey to assess BMW's current market capitalization.
If BMW's market capitalization is on an upward trend, we can buy BMW at a price slightly above the market price.
In this way, you will not lose money, which not only meets the needs of our acquisition, but also does not allow you to make a loss-making transaction. ”
Looking at Chief David with a flat smile on his face, Franz-Joseph Papp's face changed, and he immediately understood that the other party had learned his details.
Three months is not a long time, nor is it short, and it is really a question whether BMW can survive these three months.
Even if the other party is intentionally targeted, BMW is likely to face bankruptcy within three months, and the market value will be greatly reduced, and the loss will be more serious.
Looking at the manager of David who was no longer speechless, Franz-Joseph Papp understood that the other party had grasped his weakness, that is, he knew that BMW was in a crisis of broken capital chain, and he had the initiative.
Franz-Joseph Papp smirked and took the initiative to say, "Not really, Chief David. BMW's current market capitalisation is around £300,000 and if you are willing to bid £350,000, I can sell all of BMW's shares to you. ”
Hearing this, the head of David shook his head with a smile and said, "Seriously, Mr. Franz, the price of 350,000 pounds is simply impossible.
To make it a secret, the royal consortium bought Boeing in the United States, and the total cost was only about $2 million.
At the moment, BMW only has the capacity to produce engines, and the price of £150,000 is already the highest price we can offer. ”
At present, BMW is only a manufacturer of aircraft engines after all, and has not yet developed other businesses.
Boeing and Douglas both have the production capacity of aircraft engines, and with the original Diesel engine laboratory in Australasia, BMW's engine production is not so important to Australasia, even if BMW's most valuable engine production is currently the engine.
Hearing this, Franz-Joseph Papu has given up on his plan to make a fortune from this share sale.
But in any case, BMW's design and production capabilities in aircraft engines are still relatively good, as can be seen from the famous Bavaria.
German industry as a whole is not weak, and even if it suffers from huge restrictions, it cannot hinder the excellent scientific research capabilities of German industry.
Of course, with a large number of German talents being tapped into Australasia, Australasia's scientific research capabilities in industry are also rising.
Although there are no giant private enterprises, there are many small and medium-sized private enterprises, and the engine is not uninvolved.
"£300,000, Mr. David." Franz-Joseph Papp gritted his teeth and said, "This is the market value of BMW, and I am willing to sell BMW to you at the market price." ”
"£200,000." Director David said flatly: "BMW is facing serious capital chain problems, as well as some financial losses.
We bought it with £200,000 and at least £50,000 to fill the financial gap.
That's enough to make a lot more than you would have paid for BMW, and to ensure that your company survives this economic crisis. ”
The most fundamental reason why BMW has not yet been acquired is that BMW has broken its capital chain and debts.
The number of engine companies in Germany was still very large, and Britain and France also migrated a considerable part after the war.
As a result, many European countries, including Britain and France, are not very interested in small engine manufacturers such as BMW, and it is naturally impossible to buy BMW at a large cost and help BMW pay off its debts.
"£250,000, Mr. Davy." Franz-Joseph Papp quoted the price again, the lowest he could accept.
BMW's financial chain problems also arose in his company, and Franz-Josef Papp was also in dire need of funds from the sale of BMW to fill the funding gap in his own company.
Franz-Josef Papp is clearly more affectionate towards his company than BMW, which he bought in the middle of the process, and he does not want his company to go bankrupt.
After all, as a well-known financier in Austria, his net worth is basically earned by his own company.
Other companies can be acquired again if they are gone, but if their original company is gone, it will be more difficult to make a comeback.
"No problem." Managing David nodded flatly, but put forward other conditions: "But you have to help us relocate BMW to Australasia." At the same time, I hope that you can help us to recruit a large number of workers and technical talents from Germany in the name of BMW and you.
If these two things are done well, I don't mind helping your company through this difficult time, or even swallowing up other smaller companies and becoming an Austrian financial giant. ”
Compared with Australasia's own excavation of talents, it is definitely more efficient for these Germans to help Australasia excavate their own people.
As for whether these capitalists are willing or not, in the face of sufficient interests, the capitalists have nothing but money in their eyes.
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(End of chapter)