Reborn Xiangjiang as a Tycoon

Chapter 345 Negotiation Failed

Negotiations between the team headed by Bill Harveys, Vivien Kelly and Doug Gordon and the British-owned family short side did not go smoothly.

Hutchison Whampoa's closing price on Tuesday was HK$49.13, an increase of 28.58% on the day.

Nowadays, Hutchison Whampoa's stock price is close to HK$50, so Bill Harveys and others believe that the price for selling the stock to Henry Kessar must be above HK$50, and there must be a premium of no less than 20%.

In other words, the transaction price must be close to 60 Hong Kong dollars.

How could Henry Caesar and the others accept this price? The price they gave was HK$42. In their view, they bought a large amount of stocks and there should be a 15% discount. Otherwise, Bill Harveys and the others would sell.

More than 50 million shares will definitely suppress the stock price a lot, and their discount of only 15% is not much.

The price difference between the two parties was too big. Although Henry Kasik and others later added 1 Hong Kong dollar, the negotiation was still unsuccessful.

In the view of Bill Harveys and others, it is absolutely impossible to go below 45 Hong Kong dollars. This is the lowest price given by the boss, and they cannot make a transaction lower than this price. Furthermore, they cannot sell at exactly 45 Hong Kong dollars.

Closing the deal, this just reaches the boss's bottom line, so what does the boss want them to do? How to show their ability?

The first day of negotiations passed like this.

The next day, Wednesday, the international gold price neither rose nor fell sharply yesterday, but was still consolidating around US$205 per ounce. The trend of Hutchison Whampoa's stock price on this day will not be affected by yesterday's gold price.

However, although the international gold price did not rise yesterday, the Hang Seng Index continued to rise on Wednesday, so that Hutchison Whampoa's stock price also rose a bit today, closing at HK$50.4.

The 2.59% increase that day was not small considering Hutchison Whampoa’s market capitalization of almost HK$20 billion.

When the price was HK$50 that day, it was not that Henry Caesar and others did not want to suppress the stock price and prevent it from rising. But after they sold 1 million shares and found that they still could not suppress the stock price, they chose to give up. After all, they only wanted to sell 1 million shares.

There are 13 million Hutchison Whampoa shares left.

Henry Kaiser and others are worried. They are worried that a large amount of funds will suddenly emerge after they sell a large amount of money. Now that the market is generally upward, they dare not sell a large amount anymore, making the stocks they want to cover even worse.

Come more and more.

On this day, Bill Harveys and others did not negotiate with Henry Kaiserk and others, because Henry Kaiserk and others decided to wait and see for a few days. Of course, Bill Harveys and others would not take the initiative to negotiate, which would be tantamount to

Said they were in a hurry to sell the stock.

However, just that night, good news for Hutchison Whampoa appeared again, and the price of gold rose sharply again, rising to above US$210 per ounce.

Even on Thursday morning, Hong Kong time, the international gold price still stood above 210 US dollars per ounce and did not adjust downward.

At this time, Hutchison Whampoa's investment in gold futures was profitable again. Although the profit was only about 1.5%, after ten times the leverage, it was 15%, a profit of more than 20 million US dollars.

Although the profit is not much, for the market, Hutchison Whampoa's investment has made a profit, and there may be even greater profits in the future. Stock speculation is based on expectations, so this is of course a big plus for the market.

.

Hutchison Whampoa's stock price naturally rose sharply that day, easily rising to 55 Hong Kong dollars, a 10% increase. However, it slowly rose after that. After all, Hutchison Whampoa's market value exceeded 20 billion Hong Kong dollars at the moment, and it needed a lot of

Only with the participation of funds can the stock price continue to be driven up.

The international gold price rose again, and it seemed that it was likely to continue to rise in the future. Therefore, Henry Kaiser and others couldn't help it anymore, and once again approached Bill Harveys and the others for negotiation.

However, at this time, Lin Baicheng's lowest price has been raised again, and the selling price cannot be lower than 50 Hong Kong dollars. It is normal that as the stock price continues to rise, his lowest price will only get higher and higher. It is impossible for Hutchison Whampoa's stock price to

When the price rises to HK$60, can he still accept selling for HK$45? He is not a fool.

Bill Harveys and the others accepted the negotiation, and they said the same thing. The selling price should be a 20% premium based on the existing stock price, and the bidding price was HK$65.

Henry Caesar and others now want to cover 57 million shares. If the deal is really done at this price, they will have to pay 3.7 billion Hong Kong dollars. Although they will not lose that much, the loss will be nearly 2 billion Hong Kong dollars, which they cannot accept.

Henry Caesar and the others naturally bargained. This time they were more sincere than last time. After all, this time they restarted negotiations, so they offered a price of HK$50 per share.

The negotiation was a back-and-forth, and Bill Harveys and the others gave in and lowered the price to HK$63, a premium of about 15%.

Henry Caesar and the others still couldn't accept it and continued to bargain.

On that day, the negotiations between the two parties still failed, and there was still a big gap between their respective bids.

The closing price of Hutchison Whampoa that day was HK$57.3, with a total market value of nearly HK$23 billion, making it the company with the highest market value among listed companies in Hong Kong.

On Friday, the international gold price continued to rise yesterday, but this time it did not rise significantly, only rising by about 1.3%. The gold price fluctuated at a price of 213 US dollars per ounce.

After the stock market opened today, Hutchison Whampoa's stock price fell sharply after the initial rise, before it even touched the price of HK$60. The lowest price even fell below the price of HK$55, but it quickly rebounded.

When it goes up, it fluctuates between HK$55 and HK$60, with a relatively large amplitude.

The reason why Hutchison Whampoa's stock price did not rise with the rise in gold prices today is because Hutchison Whampoa's stock price has risen too much in recent days, and there are too many profits in it, and a lot of funds are taking advantage of the good news.

Goods go.

Of course, there are funds to ship and leave, and when the situation improves, of course there are funds to continue to do long positions. Therefore, Hutchison Whampoa's stock price only fluctuates, digesting the early gains, and does not continue to fall unilaterally.

Bill Harveys and others also had negotiations with the short side today, but after Bill Harveys and the others lowered the price to HK$60, they stopped reducing it. As for Henry Caesar and the others, they bid HK$55, and then

There will also be no price increase, but the differences between the two parties are still not small.

Therefore, the negotiations between the two parties have still not been concluded.

For Lin Baicheng, it would be good to be able to negotiate and obtain funds as soon as possible, but if the negotiation fails in the end, he will not lose anything. At most, the acquisition in the United States can mobilize some funds from Galaxy Games.

If that doesn't work, you can still get a loan from a bank. Just using the assets in the United States as collateral can allow Lin Baicheng to borrow a lot of money.

(End of chapter)