celestial system of the solar system

Chapter 149 Where is the White Knight
When Wang Chenglin was smug, who would have thought that the Feng family would suddenly come out and hit Wang Chenglin with a sap?
The Feng family's conspiracy is closely linked.

The first step of the conspiracy was that a patent company in country M filed a lawsuit against Wang Chenglin's Wang company and client P company.The company named J sued Wang's company and P company for infringing the patent right of J company.

In order to protect the marketing channel, Wang Chenglin's company had to take the initiative to bear the litigation costs and infringement guarantee for the client company.

The patent lawsuit in country M is indescribable.Of course there are quite a few normal infringement lawsuits, but many of them are simply outrageous, and some are simply big companies taking advantage of their first-mover advantage and using off-market tactics against threatening competitors—they don’t care whether they win or lose the lawsuit, and just want to drag the other party down.

The patent company suing Wang Chenglin's company is the kind that makes trouble for no reason.

In the patent company's lawsuit, several patents were claimed to be infringed.The most exaggerated one is that the patent company believes that the shape of Wang's VR product infringes a patent on the shape of the eye mask of the patent company.

The two are completely irrelevant, okay?

However, due to the relevant provisions of the procedural law of country M, this kind of litigation court has also accepted it.

It is not surprising for companies to fight patent lawsuits.It can even be said that if a company has never fought a patent lawsuit, it simply does not deserve to be called a big company.

But before Wang Chenglin could react, the second step of the conspiracy appeared immediately.

Although the company founded by Wang Chenglin is in the mainland, it is listed in HK. As soon as the court in country M accepted the case, the negative news about Wang's company in HK spread at an incredible speed.

Putting aside the purely speculative rumors, there are three remarks that have had a great negative impact.

[-]. Country M is more advanced in science and technology, and has many high-tech patents, so Wang's company's infringement should probably be true.

HK is deeply influenced by colonial culture, and this kind of illogical view is very popular among stock investors.

[-]. The relationship between the two countries has been tense recently. Even if it is difficult to judge whether Wang's company is infringing, country M may rule that Wang's company will lose the lawsuit for political purposes.

No matter when and where, there will be a market for conspiracy theories.Therefore, many investors believe in this analysis.

[-]. Once Wang’s company loses the lawsuit, it will not only have to compensate for the infringement itself, but also bear the litigation costs and infringement compensation of the client P company.Then, Wang's company will bear an astronomical amount of compensation, even the pants.

With the spread of these negative remarks, the stock price of Wang's company began to fall off a cliff.

Wang Chenglin judged privately that the Feng family must have used this opportunity to short the shares of Wang's company, taking the opportunity to make a fortune.

Strictly speaking, the rise and fall of the stock price will not have any impact on the nature of the company.Because listed companies do not make profits by buying stocks in reverse.

But in fact, a drop in stock prices will affect the company's operating conditions and seriously lead to a vicious circle.Moreover, the decline in stock prices is not conducive to company financing, and there is even a risk of being acquired by other companies.

Therefore, when the stock price plummets, the company should take the opportunity to repurchase shares if it has the ability.

Buying back shares when the stock price is low is beneficial to the company's operations.Moreover, once the company repurchases shares, it can prevent the stock price from continuing to fall, and even make the stock price rise.

But unfortunately, Wang's company invested a lot of money in the development of VR products.Later, in order to obtain the order, he also borrowed money to purchase a batch of expensive advanced equipment.Therefore, the cash flow of Wang's company is not healthy.

Recently, Wang's company's operating situation is bad, and it is also burdened with heavy burdens such as litigation, so the company's cash pool is almost exhausted.No matter how much Wang Chenglin wanted to repurchase stocks, he had more than enough energy.

The more you are afraid of something, the more likely it will happen.

When the stock price of Wang's company fell into a junk stock, then, the Feng family showed the third step of the conspiracy.

A subsidiary of the Feng Family Group first quietly absorbed stock chips in the market when the stock fell to the bottom.After the reporting and announcement obligations are triggered, a tender offer will be issued directly to all shareholders of Wang Company.

At this time, Wang's company has no power to resist.

Hostile acquirers are often referred to as "black knights."When a hostile takeover occurs, if the target company is unable to resist for some reason, it often needs the help of a "white knight", that is, seeking friendly help.

How to do it?It is to sell the equity to a friendly company at a preferential price, and both parties promise not to change the management.

However, at this time, Wang's company could not find the "White Knight".

There are no impervious walls in the world.

People who don't know will never know the causes and consequences of Wang's company's hostile takeover, and those who should know also understand the inside story.

The Feng family can gain a lot of benefits by acquiring Wang's company.Because anyone with a discerning eye can guess that the patent company in country M that filed the patent infringement case must be controlled by the Feng family.

Once the Feng family succeeds in acquiring Wang's company, the patent company will naturally reach a settlement with Wang's company soon, so Wang's company can develop normally again.

In this case, acting as a "white knight" to save Wang's company from the crisis is tantamount to fighting against the Feng family.

Cutting off one's wealth is like killing one's parents.

The Feng family is a top rich man. To have such an enmity with a top rich man for a listed company with a market value of about 50 billion before the stock price fell, it is not a problem that can be solved by friendship - there must be enough interests.

However, there is not enough room for interest in this matter.

Wang's company is currently in a bad situation, and it's hard to say whether it can escape.

If a "white knight" takes a stake in Wang's company, he might lose the patent lawsuit.At that time, Wang's company would need to pay huge compensation.Even if Wang's company can survive bankruptcy, it will face an extremely difficult situation next.

In this way, the "White Knight" will be empty-handed.Offending the Feng family fiercely, and possibly losing a lot of money, who would do such a thankless thing?

Patent prosecution, rumor spreading, hostile takeover, a series of vicious combination punches, Wang Chenglin who was caught off guard was helpless.

In fact, Wang Chenglin did not confirm the identity of the man behind the scenes until a company under the Feng Family Group made a takeover offer.

Of course, Wang Chenglin had no evidence to believe that a series of things were caused by Feng's family, it was purely free evidence.But according to the iron law of "whoever gets the most benefit is the murderer behind the scenes", Wang Chenglin is sure that he will not make a mistake.

Unfortunately, knowing who is behind this is of no use.Because Wang Chenglin himself was unable to resist and could not find anyone who could help him.

In this world, there are often people who are willing to add to the cake, but those who are willing to give charcoal in a timely manner are rare.

In the current situation of Wang's company, Wang Chenglin couldn't think of how to break the situation.

(End of this chapter)