Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 195 Anonymous Letter (Seeking monthly votes, recommendations, and subscriptions!)

After leaving the HSBC building and getting into his car, Chen Bingwen's face darkened.

Zhao Gang glanced at the car through the rearview mirror, didn't ask any questions, and started the car.

It was quiet inside the car.

He leaned back in his chair, closed his eyes, and quickly reviewed his meeting with Shen Bi.

Shen Bi's attitude speaks volumes.

The chances of directly acquiring the 33.65% stake in Hutchison Whampoa from HSBC are slim.

Sir Michael Sandberg didn't even give him a chance to submit a bid, brushing it off with the official excuse that "a lengthy board process is required."

Chen Bingwen was almost certain that Shen Bi and Li Jiacheng had probably already reached some kind of tacit understanding, and might even have discussed the specific framework of the deal.

That's why he was able to remain so calm and composed; even the anonymous letter questioning compliance didn't really make him nervous.

But should we just give up like this?

Impossible.

If HSBC is the only option, then we'll try another one.

If a direct acquisition doesn't work, then we'll prevent Li Jiacheng from acquiring it smoothly.

As long as Li Ka-shing cannot acquire controlling interest, Hutchison Whampoa remains a lucrative target, and he will still have opportunities in the future.

If Li Ka-shing were to easily take control of Hutchison Whampoa, given his abilities and resources, it would be virtually impossible for him to snatch any more from them.

How to stop it?

Chen Bingwen's brain was working at lightning speed.

Directly competing with funds is not the best option at this stage.

We need to leverage external forces.

His thoughts gradually became clearer, and a plan took shape in his mind.

HSBC wanted to get things done quietly, fearing any unforeseen complications.

He deliberately muddied the waters, drawing out potential opponents.

The biggest opponents, of course, will be Hutchison Whampoa's other major existing shareholders, especially British investment banks such as Swire and Jardine Matheson.

Can they just sit idly by and watch HSBC hand over control of Hutchison Whampoa to Li Ka-shing, this "nouveau riche Chinese businessman"?

Chen Bingwen felt the possibility was extremely low.

While there was cooperation among British trading companies, the underlying competition and mutual disdain were even more deeply rooted.

Swire and Jardine Matheson, these long-established British companies, would probably never be happy to see Li Ka-shing riding on their heads.

Back at the Weiye Building, Chen Bingwen had his secretary invite Fang Wenshan, Ling Peiyi, and Gu Yongxian over.

"It seems that the HSBC route is not viable. Sir Michael Sandberg's attitude is very clear; he has probably already found a buyer."

My guess is that this potential buyer is very likely Li Ka-shing of Cheung Kong Holdings.

The three of them arrived quickly.

When Fang Wenshan saw Chen Bingwen's expression, his heart skipped a beat, knowing that the negotiations with HSBC were not going smoothly.

"Mr. Chen, what about HSBC?" Fang Wenshan asked tentatively.

Chen Bingwen waved his hand, gesturing for them to sit down.

"It seems that the HSBC route is not viable."

Sir Michael Sandberg's stance was clear: he would not sell his Hutchison Whampoa shares to us.

Chen Bingwen got straight to the point, saying, "Li Jiacheng should have already reached some kind of tacit understanding with him."

Therefore, we need to find another way.

Ling Peiyi frowned and asked, "Mr. Chen, what do you mean?"

"Prevent Li Ka-shing from acquiring HSBC shares."

Chen Bingwen tapped his fingers on the table. "Although HSBC is the major shareholder, Hutchison Whampoa has other important shareholders, such as Swire Group, Jardine Matheson, and the management represented by General Manager Wei Li."

If these people collectively oppose it, HSBC cannot act unilaterally.

Gu Yongxian said, "Mr. Chen, from a legal and procedural standpoint, HSBC, as a major shareholder, has the right to dispose of its own assets."

However, if the transaction triggers strong opposition from other shareholders, or even leads to lawsuits or demands for a special shareholders' meeting, HSBC will face significant pressure.

Especially if it involves internal conflicts within British-owned businesses, Sir Michael Sandberg might reconsider.

“That’s right.” Chen Bingwen nodded. “What we need to do is ignite this powder keg.”

Currently, the major shareholders of Hutchison Whampoa hold approximately 8%, Jardine Matheson holds 6%, and Wynn Resorts and management hold approximately 6%, plus our 10.8%, as well as some retail investors and institutions.

After thinking for a moment, Chen Bingwen continued, "We need to write an anonymous letter, in the voice of an HSBC insider, and send it to Swire, Jardine Matheson, Wynn, and other shareholders holding more than 3% of the shares."

The letter was intended to imply that HSBC was secretly meeting with Li Ka-shing and our Sugar Capital, preparing to sell its shares in Hutchison Whampoa, thereby harming the interests of other shareholders.

Ling Peiyi was a little worried: "Mr. Chen, isn't this too obvious? Will they believe it?" Chen Bingwen looked at Ling Peiyi and said: "That's exactly what we want them to guess."

The letter did not draw a direct conclusion, only stating that HSBC was simultaneously contacting several potential buyers, including Cheung Kong Holdings and Sugar Capital.

Let the recipient decide for themselves who is more likely to close the deal.

Then he turned to Gu Yongxian and said, "Attorney Gu, you write the letter. Make it ambiguous."

The report highlights that HSBC may sell at a low price to quickly cash out, potentially harming the interests of other shareholders.

Swire and Jardine Matheson are most susceptible to this approach.

Gu Yongxian immediately understood: "Understood."

I would imply that HSBC might sell its shares to a close buyer at a friendly price, which violates the principles of commercial fairness.

Fang Wenshan laughed and said, "In this way, as long as we arouse the vigilance of Swire and Jardine Matheson, and make them realize that Li Jiacheng taking over Hutchison Whampoa is not a good thing for them, but even a threat."

They will definitely take the initiative to stop it.

“That’s right.” Chen Bingwen nodded and said to the three of them with a smile, “Swire and Jardine Matheson, these old British-owned trading companies, look down on local Chinese businessmen, and are especially wary of intruders like Li Jiacheng who will take away their core interests.”

They would never sit idly by and watch HSBC hand over such a lucrative piece of meat as Hutchison Whampoa to a nouveau riche in their eyes.

What we need to do is ignite this fire and let them vie for power with HSBC and Li Ka-shing.

He paused briefly and added, "The anonymous letters need to be made more convincing. They should be forwarded through shell companies we register overseas and then handed over by law firms. They must not be directly linked to us."

But we need to ensure that Wealth Management, Swire's Stearns, and Jardine Matheson's New Balance are among the first to see it.

"Understood. I will handle it without leaving a trace," Gu Yongxian replied solemnly.

He knew that this move was risky; if it were discovered that Sugarheart Capital was the one stirring things up behind the scenes, it would completely offend HSBC and the British business community.

But the business world is like a battlefield, and sometimes you have to take risky moves.

He was betting on Swire and Jardine Matheson's inherent arrogance and their desire to protect their vested interests, betting that they would not tolerate Li Ka-shing's easy takeover of Hutchison Whampoa.

A few days later, Swire Group Chairman Stanford and Jardine Matheson Group taiwan Newbikin received an anonymous letter with cryptic wording but a wealth of information through their respective channels at almost the same time.

As Chen Bingwen had predicted, the letter caused a huge uproar within the two British giants.

In his office on the top floor of Swire Tower, Shi Yadi put down the letter and said to the financial director beside him with a gloomy expression, "What is HSBC trying to do?"
Has Shen Bi forgotten his own position?
Even at its worst, Hutchison Whampoa was once one of the most reputable British-owned companies.

By privately contacting Li Jiacheng and Sugar Heart Capital, is he perhaps trying to install a Chinese-funded entity to take over?

The CFO responded, "Sir, the origin of this letter is unknown, and its contents need to be verified."

“There’s no smoke without fire!” Shi Yadi interrupted him. “Shen Bi’s recent behavior has been somewhat unusual.”

HSBC's stake in Hutchison Whampoa is already a sensitive issue, and the fact that it chose to sell at this time, and to the very person who has been in the spotlight recently, is that?
This inevitably raises suspicions about his true intentions.

We must immediately express our serious concerns to the HSBC board!
We must not allow HSBC to unilaterally decide the future of Hutchison Whampoa!

Meanwhile, at Jardine Matheson, Newbikin's reaction was even more intense.

Jardine Matheson and Lee Ka-shing had a grudge from the previous battle for Kowloon Wharf, and were therefore highly sensitive to this matter.

"It's that Li Jiacheng again!" Niu Bijian slammed the letter on his desk. "He's overstepped his bounds!"
Haven't we learned enough lessons from Wharf Holdings?

Now they've even set their sights on Hutchison Whampoa!

If HSBC were to actually sell its shares to him, it would be like letting a wolf into the house!

After saying that, he dialed the phone number of the Swire Group's senior manager.

"Niu Bijian, did you receive the letter?" As soon as the call connected, before Niu Bijian could even speak, Shi Yadi asked bluntly, "Shen Bi's move was quite subtle."

“Received.” Newman’s voice was cold and hard. “He wants to treat Hutchison Whampoa as his private property? Did he ask us, the old shareholders, for advice?”
Li Jiacheng: "Hmph, the score from Kowloon Wharf hasn't been settled yet; he's overstepped his bounds."

“We cannot stand idly by,” Shi Yadi said coldly. “I suggest that we jointly submit a formal inquiry letter to the HSBC board of directors, demanding that Sir Michael Sandberg provide a detailed explanation to all directors regarding the disposal of Hutchison Whampoa shares, and promise that any major decisions must go through the board’s approval process.”

“That suits me perfectly.” Newbie immediately agreed. “I’ll have my secretary draft the letter right away.”

In addition, I feel it is necessary to privately meet with several independent directors who are on good terms with us to communicate in advance and garner their support.

“Okay. Let’s split up,” Shi Yadi added. “In addition, I will have the legal department look into the company’s articles of association and shareholder agreement to see if there are any clauses that can restrict HSBC’s unilateral actions.”

The hidden contradictions and suspicions within the British-owned camp were instantly ignited by this anonymous letter.

Based on their instinct to maintain the traditional interests of British capital and their natural wariness of the rise of Chinese business power, Swire and Jardine Matheson quickly reached a consensus and decided to join forces to put pressure on HSBC.

Moreover, just as Chen Bingwen guessed, both Swire and Jardine Matheson selectively ignored the existence of Sugar Heart Capital mentioned in the anonymous letter.

In their eyes, Sugar Capital, whose main business is food and beverage, is far less threatening than Cheung Kong Holdings, whose main business is real estate.

As both are British-owned giants, it is perfectly normal for them to hold shares in each other.

Both Swire and Jardine Matheson hold shares in HSBC, and the taipans of both companies are also directors on HSBC's board of directors.

Sir Michael Sandberg's private plan to sell HSBC's stake in Hutchison Whampoa has, to some extent, infringed upon their fundamental interests.

Therefore, the two senior executives immediately turned their attention to Sim Bi.

That afternoon, a strongly worded joint letter of inquiry was placed on Sir Michael Sandberg's desk.

(End of this chapter)