Bad news about the world economy spreads frequently. When people all over the world are panicking, a blockbuster deal comes from Europe:
Royal Fund invested 51.2 billion euros to acquire the Swiss ABB Group and obtained 64.37% of its equity, becoming its largest controlling shareholder and officially joining the board of directors.
Since this cross-border M&A transaction involves the competitive landscape in the field of automated robots, it needs to be approved by the antitrust agencies of the world's major economies such as Switzerland, the European Union, the United States, Japan, and China before it can be successfully passed.
An official from the Royal Family Fund said:
The transaction has been approved by Switzerland, and China, the European Union and the United States have successively welcomed the move:
It is believed that this merger will greatly stimulate market confidence and show the world-famous Wang Group's long-term optimism for the future economy.
Just three days apart, August 5, 2008
After the London Financial Exchange opened in the morning, Royal Fund publicly announced that it would raise shares in Rio Tinto and increase its stake in the company to 5.1%.
It said it has strong confidence in the resilience of the European economy and is optimistic about the long term, and will continue to invest in undervalued companies including Rio Tinto.
This move once greatly boosted market confidence and led the entire market to turn from negative to positive. On this morning, Rio Tinto's stock rose slightly by 3.2%, and trading volume increased significantly.
But after the market opened in the afternoon
Under heavy selling pressure, the market soon fell again, and Rio Tinto's stock also fell. The closing price rose slightly by 0.94%, and the relevant indexes formed a clear W-shape.
A merger and acquisition worth hundreds of billions of dollars is like a big fat man jumping into a swimming pool. It is difficult not to notice the high splash of water.
This super bombshell news quickly aroused great interest in the international financial community and was one of the few bright spots in the dark clouds surrounding the subprime mortgage crisis.
It's very interesting to say, it's really full of twists and turns.
Beginning at the end of 2007, BHP Billiton announced a US$145 billion mega-merger plan to reintegrate its voice in the world's bulk resources sector.
Rio Tinto, which was listed in London, England, has become the darling of the international financial community, and relevant eye-catching hot financial reports appear in the newspapers from time to time.
This marriage that ended in vain can be said to be a matter of passion. As an enthusiastic suitor, BHP Billiton can be said to be full of sincerity.
At the end of 2007, Rio Tinto's market value remained at around 70 billion pounds, equivalent to approximately US$105-108 billion.
After the announcement of the merger intention, Rio Tinto's market value experienced a sharp rise in a short period of time, reaching a maximum of 788 pounds. BHP Billiton offered a high premium for this and was willing to pay a price of US$145 billion to acquire the other party.
Unfortunately, this is just flattering to the blind.
Rio Tinto's board of directors gave little thought and flatly rejected the other party's overtures.
In order to resist the strong M&A pressure from BHP Billiton, Rio Tinto also introduced a third party, Chinalco, and invested US$14 billion to purchase 9% of the shares, becoming its largest single shareholder.
The world-class mining giants sang and I came on stage, performing a particularly exciting performance.
All these
Many variables have arisen for this world financial focus. When the storm of the commodity crisis hit, the situation in the world changed.
All banks and financial institutions tightened their purse strings. BHP Billiton, which had previously vowed that it was bound to win, was forced to announce that it would give up the acquisition and ended it hastily, making it a big joke that ended in an anticlimax.
As a result, Rio Tinto's stock has gone through a roller coaster on the K-line chart, falling from a peak of 78.8 billion pounds to today's 53 billion pounds, almost 40%.
The stock price was cut in half, turning from a white swan into an ugly duckling in an instant.
Among them, Rio Tinto's fundamentals have not changed at all, except for the irrational rise caused by the news of mergers and acquisitions and the return to the original value factors after the bad news was realized.
To a large extent, the irrational decline was caused by the overall trend of the international market.
Rio Tinto was trapped in a cash flow shortage and sought help from Chinalco, its newly introduced strategic partner. However, Chinalco also had difficulties.
At the beginning of 2008, US$14 billion was invested, but in just half a year the value was almost halved.
With such a huge loss of state-owned assets, coupled with the current severe subprime financial crisis, Chinalco has also cautiously tightened its purse strings...
Just when the melon-eating crowd thought that all this was over, who knew that the curtain had just opened and the real boss appeared:
From August 5th to August 9th
The Royal Family Fund has continuously increased its holdings of Rio Tinto shares in the market through its open seats on the London Financial Exchange. It has issued 11 announcements of increasing its holdings in five days, demonstrating the strong krypton gold strength of the super rich.
In a word, on the London Financial Exchange open market.
The Royal Fund bought up Rio Tinto shares like a gust of wind, pushing its overall price up by 21% against the market trend, once again reaching a market capitalization of 64.1 billion pounds.
Within a week, it spent approximately 28.1 billion pounds (approximately 43.3 billion U.S. dollars) to continuously increase its holdings of Rio Tinto shares, causing a shocking uproar in the market.
As a result, Royal Fund's shareholding soared to 46.1%, achieving absolute control of Rio Tinto and announcing that it would convene a board of directors on September 10 to elect a new chairman of Rio Tinto.
This operation was as fierce as a tiger's, and the royal family capital took advantage of the general trend, stirring up the spring water of the river.
Since it is related to the industrial structure of the world's bulk resources field, the Royal Family Fund's control of Rio Tinto's equity through the British Red River Resources Company also requires approval from antitrust agencies in the United States, Japan, South Korea and the European Union and China, including relevant Australian agencies.
World Financial Magazine gave mixed reviews on this, viewing it all with mixed emotions of wariness, surprise and a little jealousy.
The relevant report by Germany's Der Spiegel is very representative and fully reflects the sour grapes mentality of European and American public opinion circles.
The report said:
For most companies in the world, 2008 was a difficult year.
There is an old proverb in the East: Flies will not bite seamless eggs.
The copier paper wasted in the office, the Dell computers abandoned before they were opened, the company managers who held parties with public funds, all the loopholes and mismanagement in the past converged into a river, and finally evolved into a shocking and serious financial crisis.
In fact, before the harshest moment has come, many world-famous companies have already collapsed.
God, save us.
The companies heading to the Land of Redemption are like a crowd of people fleeing. They are skinny, ragged, and their numb eyes are staring straight ahead, moving forward with the flow of people fleeing.
They were penniless, had no warm clothing or food, and could die on the road at any time.
The luxury cars, the high-end red wines that were squandered at previous dances, and the exquisite chocolate cakes decorated with floral patterns and strawberries were all reduced to nothing after the disaster struck.
People even fight over a dog bone on the roadside, just to survive.
At this moment, the savior that the fleeing army was waiting for arrived.
The Royal Family Fund drove a tall carriage, surrounded by sturdy servants. They picked through the fleeing crowd and included some pretty beauties in their bags.
What is left is just a piece of black bread or a dog bone, enough for everyone to break their heads and fight for it.
Rio Tinto is the latest example. She, a noble-born princess, once refused a high dowry gift from an Australian prince (BHP Billiton). Even the mysterious Eastern nobleman (Chinalco) fell in love with her and used expensive
Silk and porcelain filled her palace just for Princess Bo's smile.
Nowadays, a down-and-out phoenix is worse than a chicken.
The Royal Family Fund, which came in a tall carriage, only dropped a piece of black bread, and asked the once noble princess to get on the carriage obediently...
Due to the current situation, when no one had a piece of bread to satisfy their hunger, the Royal Family Fund hoarded countless white breads, barrels of milk and fine wine, and even chocolate and cheese. They lacked everything.
When these once noble princesses and princes sold themselves at low prices, people sadly discovered that they had no resistance at all to the royal funds that came in tall carriages dressed in silk and satin.
After all, survival is the most important thing.
Early morning, Victoria Peak
In the mist-shrouded Lingxiao Pavilion
"It's just nonsense. What the hell is this written about?"
Wang Yaocheng just took a sip of juice and squirted it out. He threw the messy copy of "Der Spiegel" on the ground, looking very angry at himself.
While eating breakfast, Si Wanru, who was sitting opposite, was suddenly startled and asked with concern: "Brother Cheng, what's wrong?"
"It's nothing, I'm disgusted."
Wang Yaocheng picked up a white napkin and wiped his mouth. He stood up and said, "I'm going to the company soon. The children's vacation is coming to an end. Tell them that I will take the children to Ocean Park tomorrow. Everyone will have a share."
What a gift!”
"They will definitely be very happy. I just hope you don't break your promise."
"Haha, it won't happen this time."
Wang Yaocheng came over and put his arms around Si Wanru's weak shoulders, kissed her gently on her smooth forehead, turned around and left the luxurious restaurant.
At this time, the Malaysian maid standing aside had finished cleaning the floor and put away the "Der Spiegel".
Si Wanru looked at it doubtfully, then made a gesture with her fair-skinned jade fingers, asking the maid to bring over the magazine.
The magazine has been simply cleaned, and the remaining pulp on the surface has been wiped away, but there are still orange juice marks left.
Si Wanru turned to the page that Wang Yaocheng had just seen. It turned out to be the focus of world financial hot spots in "Der Spiegel" magazine. It was a long and in-depth analysis article with the title:
With the power to control destiny, who does the Royal Family Fund prefer?
Well, the news media has always insisted on not making shocking statements. The more shocking the headlines, the better. This is also the way to survive.
What is that...
It subverts three views. Men will be silent after watching it, and women will cry after watching it...
Si Wanru smiled faintly, her graceful and noble demeanor fully revealed, and continued to read without caring.
a moment later
The laughter like silver bells resounded through the restaurant, and the whole person was shaking with laughter. Si Wanru was so amused that she obviously couldn't eat this breakfast anymore.
The fact that financial news reports can achieve such an entertaining effect shows that the writers have profound skills and are truly extraordinary.
(A few words, I'm sorry for interrupting the update yesterday. This is because my family was sick. I was busy in the hospital all day yesterday and didn't come back until very late. I originally wanted to ask for leave, but I didn't have the ability to post more than 1,000 words.
I can't go out, so I can only do it. I sincerely apologize to my book friends, and I will resume normal updates today, uh... two updates a day.
Let me tell you something in advance. This book has officially entered the final stage. I want to try my best to make the ending as smooth as possible. It will probably be written until the first half of 2009. A new book will be released in these two days. Please support me.
Specific matters will be explained in a leaflet, thank you!)