blackstone code

Chapter 855 Melt With Me

After Lynch hung up the phone, it took two or three minutes before Mr. Patu returned to the table and sat down.

He gave Lynch a period of time to think about and settle the information he had just obtained on the phone. This is a kind of courtesy, but also a kind of education.

Of course, one person's upbringing cannot be used as a standard of behavior for all people, because everyone is in a different social class, they treat the world and the world treats them differently.

You can't ask a worker to take care of you and need two or three minutes to process and settle the information. They may not even choose to avoid you before you answer the phone, but look at you carelessly.

So much so that when you look at them, they will inexplicably ask back, "Aren't you going to answer the phone?"

Well-educated people will make people feel as if they are standing under the warm sun in March and enjoying the warm spring breeze, but those who are not well-educated are not necessarily cold winter.

Not necessarily!
"Mr. Wardrick's call..." Lynch smiled and talked about the call proactively, "Where did we talk just now?"

Mr. Patu's attention was obviously taken away by the title "Mr. Wardrick", and it took him two seconds to react, "I don't mind paying all in cash, of course cross-shareholding is also possible. "

"As long as it allows me to complete the investment in this company, any method is negotiable."

Originally, Mr. Patu planned to "purchase" Lynch's shares in the form of cash plus equity, but now he has added one, willing to pay all cash.

It is actually very common to exchange shares to obtain shares of other companies. This can convert company stocks that could not be counted as cash into usable wealth without causing selling, and save these capitalists a lot of money. time and cost.

But this kind of transaction itself...in fact, there are many restrictions, not to say that it must be good and suitable for every situation.

Especially when the other party is like Mr. Patu and Mr. Wardrick, he must become more cautious.

There is not much restriction on the use of money, but shares are different.

100 million cash, you can use it as you want, whether it is to save girls in need until the last bill is spent, or use it for other personal enjoyment, that is a very free choice .

No one can refuse a person to spend his own money on a girl in need, at most they verbally condemn these people's attitude towards life.

But the shares are different. It is not easy for large companies, especially listed companies, to realize the shares in their hands. If the amount of liquidation is relatively large, they must inform the exchange in advance.

How many shares the shareholders of a certain company intend to realize, or the transfer of the rights to the shares, must inform the exchange at least one day in advance, otherwise the relevant departments will initiate an investigation on the undeclared equity changes.

This was enacted to prevent all kinds of financial crimes, although sometimes real financial crimes have more than enough ways to get around this problem.

In addition to these, there is another question, assuming that Lynch agrees to Mr. Patu's request and gets the shares of Xingmengdie Group.

However, whether the shares in his hands are realized or transferred, they must first be approved by the board of directors of the group company. This is a way for big capitalists to eat people.

Almost all consortiums and large group companies in the Federation have similar regulations to restrain members of the board of directors. Once the shares in the hands of shareholders exceed [-]%, the realization and transfer of shares must be approved by the board of directors.

It sounds a bit unbelievable. After all, this is a very personal matter, but the board of directors has its own views.

And before acquiring the shares of these consortia, some things will be written in the contract.

This not only provides capitalists with an effective method of self-protection, but also provides them with a way to "cannibalize people" by using their own group company shares to eat people!

I exchanged 100 million shares for all the shares of your company with a market value of only 50. It seems that you have made a profit?
Not only did the assets change from 50 to 100 million, but they also indirectly enjoyed a few thousandths or a few ten thousandths of the original company's shares.

But in fact, this is not the case. When the board of directors refuses you to cash out or transfer your shares, whether you will be hungry depends entirely on whether the capitalists suddenly show kindness.

There have been many such cases in the history of the federation. A large company swallowed a small company by exchanging shares. The founder of the small company declared bankruptcy before reaching the pinnacle of his life.

Because there is a stipulation in the agreement they signed that it is forbidden to realize and transfer within a certain period of time after the exchange of shares, otherwise a huge amount of compensation will be paid.

After forcing these small businessmen to death by other means, the company bought back the shares in his hands at a very low price, according to the supplementary clauses of the share transfer contract, at a low price.

Some companies even specify a price in the sidelines at which they will repurchase the shares, and they make little effort to hide their greed.

In this way, perhaps for almost nothing, they robbed one small company after another.

Maybe some people will ask, so why not just refuse them?

This question...is sometimes very difficult. First of all, many people cannot refuse the desire to get rich overnight.

The only way and standard to realize self-worth in the federation is to make oneself look like a "successful person", that is, a rich person.

Second, commercial battles are much bloodier than people imagine, not romantic at all, and much less respectful of the enemy.

Everyone who lost his family in the business war and finally chose to end his life by jumping off a building proved this point.

Even when people know there are pitfalls, sometimes they have to jump into them.

The cash after exchanging shareholdings is another kind of guarantee.

At this time, Mr. Patu, after such a short thought, gave a way of cash investment. Of course, although the cash in his mouth is cash, it is not a one-off cash, but in batches.

Lynch didn't immediately agree, "After giving up too many shares, my control over the company will be reduced, but we all know that I can't refuse some investors. Among the shares I can take out, who will take up how much? It’s not up to any one of us to decide.”

Mr. Patou nodded, "You mean you want to hold key votes?"

Lynch nodded without denying it.

"But you will definitely make some people dissatisfied by doing this. You can actually accomplish this in other ways, for example, I will stand on your side."

Lynch couldn't help laughing when he heard this, and he asked back, "Do you believe it yourself?"

"At least for this moment, I believe I can do it!"

Lynch shook his head, saying that he didn't say anything.

It is very common for the founders of Federation to be kicked out of the decision-making layer and even the board of directors by shareholders. No one guarantees that their own interests are with the founders all the time.

Rather than relying on others, it is better to hold the key votes.

According to the rules of federal law, any major vote must have the consent of a majority, so what is a majority?
This is a relatively complicated concept, because the people who first established the concept of "majority" themselves were not sure what to call the majority.

So they came up with a simple method, found some people, and gave them a point.

If there are only two people, no one can convince the other, and there is no majority among them.

When there are three people, if two people stand together, then this belongs to the majority.

In other words, most of them are more than 50.00%, but not too much.

Finally, with the help of some mathematicians, it was determined that the concept of "majority" must exceed 66 percent.

In other words, Lynch must hold no less than 30.00% of [-] shares in order to grasp the "key vote".

As long as he disagrees with the matter, the board of directors has no way to force it through.

He himself holds 30.00% of the shares of 60.00, and only 30.00% of the shares can be released. If the inevitable listing plan in the future is included, the shares that can be divided up by others are actually less than [-]%.

Too little, and investors are sure to be unhappy.

Secondly, all investors don't like someone holding key votes, which will make them feel that their money is wasted, and they can't do anything about the companies they invest in.

This is precisely a very core issue. Lynch does not want to lose his rights, because he can see through the fog and see the future, but others cannot.

In silence, Lynch seemed to have thought of a more appropriate solution.

"Mr. Patu, I have another plan, maybe you will be interested."

Mr. Patu sat very upright, no matter whether he was a nobleman or not, in short, his appearance was in line with the attitude of nobles, "Please speak, Mr. Lynch."

"We split the rights of the shares into 'rights' and 'interests'. You can get the shares you want, but these shares have no power."

"In other words, you can sit on the board of directors, but you don't have the right to vote..."

Mr. Patu shook his head first, "This can't be...", but when he said this, he didn't continue, but frowned and thought.

He subconsciously wanted to reject Lynch's proposal, but he also felt that...it's not impossible to do so.

Anyway, he doesn't intend to express his position on the board of directors or vote in a biased manner. The investment is entirely for influence and future interests, and by the way, he will use Lynch's power to enter the field of arms sales.

So shares without power do not seem to be unacceptable.

Even because of Lynch's idea, he extended many other ideas, such as some internal problems of Xingmengdie Group.

For a while, the room fell into silence...

(End of this chapter)