The Great Sage Returns from Ten Years of Imprisonment
Chapter 350 Rare Goods for Hoarding
"This 2.2% stake in Volkswagen is the decisive factor; without acquiring this equity, Porsche cannot complete its daring acquisition of a much larger company!"
"From Volkswagen's perspective, if they can acquire these shares, they can thwart Porsche's hostile takeover attempt. They're a rare commodity!"
Ling Yun said jokingly, but his tone was resolute.
At this point, he had grasped Porsche's true intention in calling China Investment Corporation.
Porsche only learned today that the Volkswagen shares they were so determined to acquire had been secretly snatched away by China Investment Corporation (CIC).
In this way, if they want to acquire 75% of the shares, forcibly take control of Volkswagen, and complete the feat of a small company swallowing a large one, they must acquire the Volkswagen shares held by CIC.
As for the remaining 5.5% of stocks on the stock market, there is no possibility for them to secretly acquire them.
Those stocks are highly fragmented and are being closely watched by countless short sellers around the world who are eager to buy them. If they continue to buy them at high prices, it will inevitably arouse public anger.
More importantly, even if they paid an extremely high price, it would be impossible for them to acquire enough shares.
The only way now is to try to acquire the portion of Volkswagen shares held by CIC through off-market negotiations.
Only by achieving this goal can they take control of Volkswagen with more than 75% of the shares!
But they never imagined that the person behind CITIC, devising strategies, was Ling Yun; their plans were destined to fail!
"Understood. We'll wait and see, then we'll remain calm and collected!"
Chairman Lou responded with a smile.
Upon hearing this, Ling Yun laughed even more heartily!
After chatting for a while, he offered several coping strategies.
The key is to delay, but not for too long. We must gain the greatest benefit before the German government takes action!
During this period, CIC cannot immediately agree to Porsche's request to hold onto this crucial 2.2% stake in Volkswagen and make it a highly sought-after commodity!
Then, they can leak some information to the market and Volkswagen, prompting the Volkswagen board to vie for this stake.
In this situation, it would be strange if the guys on the Volkswagen board didn't go crazy!
China Investment Corporation (CIC) simply needs to remain calm and play both sides, appealing to Volkswagen and Porsche by comparing the offers made by the two companies.
Naturally, CIC will cooperate with whoever offers the best terms and maximizes its interests!
This was an extreme maneuver, comparable to dancing on a tightrope.
If things go wrong, it could go awry and offend both Porsche and Volkswagen!
However, with Ling Yun directing from behind the scenes, there was absolutely no possibility of messing things up!
After listening to Ling Yun's introduction, Chairman Lou expressed his delight and joy.
After chatting for a few more minutes, Mr. Lou ended the call.
After hanging up the phone, Ling Yun glanced at Volkswagen's stock price chart and chuckled.
At this point, Volkswagen's stock price had risen by more than 130% and was still soaring upwards with unstoppable momentum!
Countless short sellers around the world are frantically buying up shares, fearing that the market will be completely depleted and they will have no choice but to commit suicide.
Of course, there were also many people who fanned the flames and added fuel to the fire during this process!
These guys are also going on a buying spree, hoarding goods, and then artificially creating panic to push the stock price of Volkswagen even higher, making a fortune in the process.
Strictly speaking, this is also the case with CITIC Qian!
However, CTBC Bank recognized the opportunity earlier and acted sooner. Its most important goal was not to make money, but to take the opportunity to enter the board of directors of Volkswagen!
Compared to this strategic objective, making money is secondary!
China Investment Corporation's involvement in the extreme short squeeze of Volkswagen's stock is something that international speculators who only want to make money cannot match!
Seeing that the trend of the stock was clear, Ling Yun turned and left the study to go downstairs to the living room to play with Da Meiyuan and Jia Jingwen.
But he didn't shut down his computer. Before going to bed, he wanted to check the trends in the European and American financial markets, just in case!
The door closed, and the study immediately fell silent.
Thousands of kilometers away in Germany, the whole country was bustling with excitement.
From the government to the general public, everyone in Germany was stunned by the soaring Volkswagen stock price. They had never seen such an extreme short squeeze before.
What's more, the stock that was being frantically shorted was Volkswagen, Germany's most important national company and one of the symbols of German industry.
Every upheaval at Volkswagen is closely related to the stability of the German economy!
As Volkswagen stock skyrocketed, investors and institutions holding the stock were naturally overjoyed and danced with glee!
Unfortunately, there are too few ordinary shares circulating in the market, so this kind of joy is destined to belong only to a very small number of people!
Unlike these people, many insightful people in Germany have realized this.
Such a massive short squeeze on Volkswagen's stock is definitely not a good thing. If left unchecked, it will surely deal a huge blow to the German economy!
After this incident, it will be a complete mess!
God knows how many short sellers will lose everything, or even commit suicide!
Many financial institutions that have made large-scale short selling of the public will also suffer significant losses, fall into crisis, and in severe cases go bankrupt!
Germany, already mired in the financial crisis, will suffer another severe blow, sinking even deeper into the mire and incurring even more staggering losses!
Frankfurt Stock Exchange Hall.
Although the German stock market continued its sharp decline today, falling by as much as 4%, the focus of the entire market was on the wildly soaring Volkswagen stock.
From the moment the market opened, every surge in the stock price caused a stir in the trading hall.
"Damn it, Volkswagen stock is up another 10%, today's increase is over 140%, when will this end? This is insane!"
"Don't be ridiculous, this is the most extreme short squeeze. What end is there? This short squeeze drama will only end when all the short sellers are forced to their deaths!"
"That's right. There are extremely limited Volkswagen shares available on the market right now, and the gap created by naked short selling is huge. Volkswagen shares are likely to skyrocket!"
"Look everyone, Volkswagen stock has surpassed 450 euros! This is absolutely insane!"
The numerous traders and operators who gathered to watch the spectacle were all talking at once, and as long as they weren't short sellers, they all had a gloating expression on their faces!
At this moment, they only regretted that they didn't have a large number of public stocks, so they couldn't take advantage of this windfall to make a fortune!
But given the opportunity, as long as they can buy shares of Volkswagen, they will not hesitate to rush to buy them!
Who would complain about having too much money? They certainly do too!
Unlike them, the short sellers who had previously been aggressively shorting Volkswagen's stock are now going crazy!
They stared intently at the trading screen with bloodshot eyes!
As soon as someone releases a lot of public stock, no matter how much, they swarm like flies to rotten meat, frantically fighting for that pitiful little bit of stock!
The result is self-evident!
The vast majority of people returned empty-handed and continued to sink deeper and deeper into the abyss of despair!
"Fuck! I've already offered 500 euros per share, why can't I get any stock? How much do these die-hard bulls want to make? Are they really trying to kill all the short sellers?"
"Does anyone know Wolfgang from Porsche? Could you call that bastard and get him to release some Volkswagen stock to save us all?"
"It's completely over. If Volkswagen's stock price breaks 500 euros, several of my clients will be lining up to jump off buildings!"
As Volkswagen's stock price soared, countless short sellers wailed as if they had lost their parents.
In desperation, some people resort to desperate measures, trying all sorts of unrealistic methods to save themselves!
Not only the German stock market, but also Wall Street across the Atlantic is in the same situation, or even worse!
The main force behind the previous aggressive shorting of this acquisition and naked short selling of Volkswagen stock came from numerous hedge funds on Wall Street!
The more enthusiastic they were before, the more they've lost now!
If everything had unfolded as it did in the previous life, these Wall Street hedge funds would have been wiped out, with total losses reaching tens of billions of euros!
Just then, a trader in the Frankfurt Stock Exchange trading floor suddenly shouted:
Breaking news: The actual number of Volkswagen shares circulating in the market is actually less than most people know—only about 5%!
"The remaining 2% or more of Volkswagen's shares were already acquired by China Investment Corporation (CIC), and Porsche is reportedly secretly contacting them."
When this news broke, everyone was stunned!
When they finally realized what had happened and looked at the stock again, their eyes nearly popped out of their sockets in shock!
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