Returning wealthy individuals develop their hometowns and become rich in the 1980s
Chapter 249 This move is pretty cool.
Zhang Yi, a Harvard graduate, has made a series of investments that have impressed Chen Dong. Chen Dong's family business consists of supermarkets, hotels, and a small amount of real estate, all of which were built up by his grandfather, Chen Shengyu.
Instead of thinking about how to improve the management of his own business, Zhang Yi, a top student, directly bought a large number of his competitors' stocks on the stock market.
That's a really cool move!
As America's third-largest hypermarket, Walmart is an unavoidable direct competitor. However, Zhang Yi instructed Allen, the chief investment officer of Huasheng Fund, to directly invest heavily in Walmart, eventually acquiring more than 12% of the shares. For this, Huasheng Fund spent $10 billion.
Faced with the aggressive attack from Huasheng Fund, the Walton family was bound to launch a strong counterattack. However, at this point, Walmart was powerless against Huasheng Fund, which held seven billion US dollars in liquid funds.
After learning that the behind-the-scenes holders of Huasheng Fund were Chen Dong, the largest director of Huadongsheng Supermarket, and his wife Zhang Yi, founder Sam decisively visited Zhang Yi to ask her if Huadongsheng was going to "go to war" with Walmart!
"Madam, your actions are unwise. Your Huasheng Fund is trying to take over my company," Sam said calmly, but the old man was seething with anger.
"I will not relinquish control of Walmart, and Huadong Sheng will not attempt to acquire this great company!"
The Walton family holds a large stake in Walmart, giving them absolute control over the company. They are unlikely to allow outsiders to interfere in the company's management. In the Walton family's view, the strong position of Huasheng Fund is a merger and acquisition.
"No, no, sir, I think you've misunderstood. My husband and I are not interested in your company, nor do we have any intention of interfering in Walmart's management," Zhang Yi said elegantly, holding her teacup and looking at the flushed old man opposite her.
"But your hostile takeover is not, as you claim, unintentional interference. My family and I will not relinquish absolute control of the company!"
Faced with Sam's reiteration of his stance, Zhang Yi chuckled, "I'm just optimistic about Walmart's future. To be honest, Mr. Sam, in our eyes, Walmart and Huadongsheng are no different. If we can't continue to generate profits, we will decisively give up!"
“Our focus is on the financial industry. You can think of this acquisition as a less-than-friendly financing,” Zhang Yi put down his teacup and leaned back on the sofa. “Perhaps we can discuss a deal. I have nearly seven billion US dollars in liquid funds, and I am willing to offer seven hundred million US dollars to acquire 15% of Walmart’s equity. The management rights will remain with your family. Huasheng Fund will only send a representative and will not interfere in any personnel appointments or dismissals.”
Upon hearing Zhang Yi's words, Sam's expression turned somewhat grim. To be honest, he was a little worried about the massive financial impact of seven billion US dollars. However, as someone who could build his fortune from scratch, he immediately weighed the pros and cons in his mind.
"1.2 billion US dollars, 8% of the equity," Sam had to state his price.
Zhang Yineng proposed a 15% equity stake for $700 million. The accountants at Huasheng Fund had carefully calculated this and believed it to be the most reasonable acquisition price.
"Eight hundred million US dollars, 12% equity, Mr. Sam, the fund hired top accountants to calculate this, and it's the most reasonable price!"
The so-called most reasonable price is the "highest" offer that has been squeezed to the extreme, which Sam naturally could not agree to. The woman in front of him had the same face as those Wall Street capitalists, stingy and ruthless!
"My final offer: one billion US dollars for 10% equity," Sam gritted his teeth and stated his bottom line. "If you don't agree, then let's settle this on the 'battlefield'!"
"make a deal!"
It is said that when the old man Sam left, he still had anger on his face. However, with the aggressive acquisition by Huasheng Fund, the news was leaked by someone, and Walmart shares rose sharply by $1.56 each. By the close of trading, the price per share had reached $4.6.
Huasheng Fund immediately sold its 2% stake, netting a profit of $3.897 million. When Sam Walton learned of this in his office, he was so angry that he almost suffered a stroke and was hospitalized.
In the office, he launched into a tirade against Zhang Yi and her Huasheng Fund, yelling, "That despicable woman, that filthy capitalist, you should be hanged from a streetlight!"
After listening to Zhang Yi's description, Chen Dong hugged her on the bed and laughed heartily. He playfully pinched Zhang Yi's nose and asked, "You didn't do this on purpose to annoy that old man, did you? Hahaha!"
"I'm not that petty. I just think the old man's asking price is too high. I have to be thrifty and save some money," Zhang Yi nestled in her husband Chen Dong's arms like a little girl, looking completely harmless.
"Besides Walmart, which other companies' stocks did you buy? Tell me so I can give you some advice," Chen Dong was amused by Zhang Yi.
"General Electric, Coca-Cola, Johnson & Johnson, IBM—the fund will invest in any company with a strong future growth potential," Zhang Yi rattled off, then looked up at Chen Dong and said, "The rest, I plan to buy government bonds!"
"Don't you plan to keep some liquid funds so you can buy at the bottom when financial markets fluctuate in a few years?"
"It won't be that fast, and I will sell some of the government bonds I have on hand when necessary. If all else fails, we can use the remaining funds," Zhang Yi pointed to the top of her head. Chen Dong knew what she was referring to and nodded.
"Steve came over to visit the day before yesterday," Zhang Yi said with a smile, suddenly remembering that she had invited Steve Jobs to the manor the day before yesterday. "Woz also came, and your precious son Jimmy chatted a lot with Steve, hehe!"
"What did you talk about?"
"Your son is actually guiding two future tech giants on the development of mobile phones and tablets," Zhang Yi thought, wanting to laugh when she remembered the day Steve Jobs looked at her incredulously and exclaimed, "Jimmy, you're a genius!"
"He wouldn't take out the tablet and let Steve and the other guy see it, would he?" Chen Dong was startled. Oh no!
Zhang Yi rolled her eyes at him. "Would I be that stupid? I already told Jimmy, and I know my son's boastful nature, so I just saved the tablet in my storage space."
"That's good. You scared me. If I had taken it out now, it would have been hard to explain."
"By the way, Elena has always wanted to adopt Rongguo as her godson. You won't object to that, will you?"
"I don't object, but we still need to ask Fifth Brother first," Chen Dong said noncommittally, but asked curiously, "I was wondering why Elena kept calling Rong Guo 'Rang Guo'er. I thought you gave him a French name! Turns out it's his name!"
"Hahaha!"
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