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Chapter 733 The opponent of the Leon Group

The opponent of Leon Group is an emerging mining group from the United States, which is backed by several Wall Street funds, so it appears to be very financially strong.

As we all know, Americans are used to being unreasonable, and Wall Street capital is synonymous with greed.

While Leon Group is doing its best to deal with the opponent, it is also checking its own business loopholes and management flaws. Once discovered, it must make every effort to make up for it to prevent the opponent from making a sudden attack and disrupting its own rhythm.

Therefore, the "White Knight Plan" of the Bank of Gaul, as a highly confidential defense plan, bypassed the normal approval process and was directly submitted to the desk of Chairman Samuel.

To put it bluntly, this plan is to show the enemy weakness and deliberately leave a gap for the opponent to attack.

Behind the Bank of Gaul is the Leon Group. Ordinary people don't know it, but as his competitors, you can know it with a little investigation. This can't be hidden from anyone.

And the Bank of Gaul plays a huge role in the mining business of Leon Group. They make full use of their own advantages to ensure the development and operation of mines by Leon Group through loans, guarantees, insurance, international exchange, and various international banking businesses.

convoy.

Therefore, rather than fighting with the Leon Group on a single project one by one, the American Butler Mining Group would be more willing to cut off the connection between the Bank of Gaul and the Leon Group. This can fundamentally cut off the competitiveness of the Leon Group.

Most of it.

As a listed company, Bank of Gaul’s equity is dispersed and the controlling shareholder’s shareholding ratio is low, which is a loophole in itself. Leon Group is a mining giant with strong strength, but most of its assets are fixed assets such as mines, which has little impact on liquidity.

The demand is greater.

Therefore, without being able to guarantee a high proportion of holdings in the Bank of Gaul, the Leon Group simply did the opposite. They dispersed their equity and controlled the Bank of Gaul directly or indirectly.

Because these shares are dispersed in large and small accounts, and many corporate shareholders appear in the form of cross-shareholdings or multiple shareholdings.

Such a complex ownership structure is extremely difficult even for Leon Group's own financial personnel to figure it out, let alone outsiders!

Since the development of Leon Group, it has encountered all kinds of competitors, but almost no one has taken action against the Bank of Gaul. This is precisely due to their approach, which is similar to an empty city strategy. It is virtual and real, which makes people dare not take action.

.

However, the opponent this time was a little different.

The financial backers behind the Bradford Mining Group are several Wall Street funds. These Wall Street capitals have a common characteristic, which is that they are not afraid of the size of their opponents.

Once a vulnerability is discovered, they will call on their friends and form a chain of interests to attract large-scale funds to attack.

Their attack method is very simple and crude, which is to use their strength to suppress others. They wave their checks and go up with a flurry of punches to kill the master. Then everyone takes what they need and eats the target.

Similar cases have appeared many times, and funds from Wall Street have become notorious for causing trouble everywhere. Leon Group certainly does not want to become the next negative example.

However, for such an opponent, the loophole of a low shareholding ratio in Bank of Gaul is very likely to be the focus of the opponent's next attack, which will become the lifeblood of the Leon Group.

To change this situation, it is actually very simple. As long as the Leon Group increases its holdings of Bank of Gaul shares and does not leave room for hostile takeovers by its opponents, it is enough.

After calculations by professional appraisers, the Leon Group only needs to increase its holdings by five to eight points, so that its public holdings of Bank of Gaul shares exceed 15%, which is enough to dispel 99% of the capital's attempts to conduct hostile takeovers.

But the question is, where does this money come from? Even based on the current low stock price, at least US$500-600 million is needed to operate.

If it is for short-term use, it is not a big deal. Such a large group can find hundreds of millions of funds from anywhere.

However, once this money is used to increase stock holdings, it will not be able to leave the market in a year and a half. Short-term holdings will not only fail to play a defensive role, but will also make investors feel uneasy and even attract the attention of the securities regulatory authorities.

investigation.

Such a medium and long-term investment is not a small amount for the Leon Group, which is stepping up its industrial layout in Africa.

Since this is a temporary plan and is not included in the company's annual capital budget, and the group's reserve fund is not enough to support such a large expenditure, it is not easy to solve it.

They need to abandon several forward projects, or apply for medium- and long-term loans from banks through project mortgages to solve the funding problem.

However, both methods are not ideal. The latter will increase the financial burden of the group, increase the debt ratio, and reduce the financial evaluation of the group.

The former will cause an imbalance in the group's industrial layout, and at the same time, a large amount of time, manpower and funds invested in the early stage of the project will also be lost.

People usually regard mineral mining, deep processing, transportation and sales as the main stages of the mining industry. The project establishment and exploration work before this are considered as preliminary preparations.

In fact, this is the most difficult stage in the entire process of mining development. It is also a stage with large investments, long time, high risks, and the highest comprehensive investment.

This stage not only requires investment in capital and manpower, but also huge investments in other aspects, such as political resources.

In a foreign country, if you want to obtain the exploration rights, mining rights and management rights of a mine, not only do you need to open up various relationships at the top and bottom of the project location, but you also need support from your own country.

Most of these expenses cannot be calculated into the project cost. If the relevant project is changed hands midway, it will be difficult to compensate for these expenses.

More importantly, the preliminary work for such large-scale projects often takes several years, ten years, or even decades.

This is a long-term investment, and it is affected by many factors. The risk of the project is extremely high, and it may be lost if it fails.

Therefore, being able to operate such a complete development project is like a high threshold, enough to stop those competing companies in the same industry that are not strong enough and not lucky enough, making Leon Group proud of the emerging upstarts.

Once this period is successfully passed, the subsequent work will be relatively simple, input and output can be measured, and the company will officially start making money.

Because of this, mining giants like Leon Group are generally more willing to do one-stop projects, relying on their own advantages in capital, technology and public relations capabilities to take over the entire project while controlling and sharing costs and risks.

At the same time, profits are maximized.

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