They are all reborn, and the grandson is still a spare tire

Chapter 682: Short Squeezing the Public

Seeing Yao Yuan opening his bloody mouth and preparing to kill him, the German's expression changed.

Model quickly exchanged glances with Stern, Vice President of the German Sovereign Fund, and nodded in unison.

The next moment, he said in a deep voice:

"According to our investigation, the cost of establishing a position for you to acquire 16% of Volkswagen's shares is around 30 euros. Now Volkswagen's stock price has soared to 200 euros per share."

"And you have increased leverage by at least three times. With the current Volkswagen stock price, your profit has reached dozens of times, and you have made tens of billions of euros in profits. It is very amazing."

"Such an amazing investment income is amazing and admirable. We are willing to acquire your equity in Volkswagen at a premium of 10% based on the current stock price."

"Including the leverage multiple, you can increase your income by about 40%, which is very cost-effective. I hope we can reach a deal, which will be beneficial to both of us."

Without any hesitation, Yao Yuan shook his head and rejected the offer.

"I'm very sorry, Mr. Model, your offer is too low and I can't accept it."

"If you really want to repurchase this 16% stake in Volkswagen, you need to meet the two conditions we have set out."

Model's facial muscles twitched suddenly, and his face became even more ugly.

He forced himself to calm down and then asked in a deep voice:

"What are the specific conditions? Tell me, I'd like to know."

The other Germans behaved the same way, their faces as black as the bottom of a pot.

Yao Yuan smiled softly and immediately put forward his conditions.

"First of all, the first condition is that we only sell 10% of the shares of Volkswagen and continue to hold the remaining 6% of the shares as long-term investors."

"This 10% of Volkswagen's shares is enough to meet your needs and bring the Lower Saxony state government's shareholding ratio to 30%, forcing Porsche to make all acquisitions public."

"However, the premium for this 10% public equity must be 100%, which is 400 euros per share. This is not negotiable..."

Before he finished speaking, the Germans on the opposite side went crazy.

"What? 100% premium, 400 euros per share, this is crazy, why don't you go and rob?"

"Absolutely impossible. You are taking advantage of the situation. I have never heard of such a high premium acquisition plan."

Model said angrily, his eyes almost bursting with fire.

Every one of the other Germans looked filled with indignation.

Even Zhou Chaoyang and the others were shocked by Yao Yuan's offer, their eyes filled with disbelief.

They have never seen or even heard of 100% equity premium!

Yao Yuan looked at the German who was about to go berserk opposite with a smile, raised his hands and pressed down gently.

"Gentlemen, please be patient. I have my own reasons for setting such conditions. I will explain them later."

"Let me talk about the second condition first. I hope we will have more cooperation opportunities in the future. I hope you can provide certain convenience for Jiuye Investment Group to invest in Germany."

"There are many high-quality listed companies in Germany. At the right time, our group will invest heavily in many listed companies in Germany. We hope that the German side will not set up artificial obstacles."

"We will bring a large amount of active funds to the German capital market, promote the development of the German economy, and obtain corresponding benefits. This is a mutually beneficial and win-win good thing."

His words made the Germans on the opposite side a little stunned, and their minds couldn't turn around for a moment!

Smash it with a hammer and give me a candied date. What tricks are you playing, you bastard?

After muttering a few words to himself, Stern nodded and said:

"The second condition is no problem. The German financial market is an open market and you are welcome to invest in Germany."

"The premise is to comply with German laws and financial regulations. As long as this can be achieved, we will never set up any artificial obstacles."

"Now let's talk about the first condition. Why do you offer such amazing conditions for selling equity? I don't quite understand."

Yao Yuan looked at the other party and said calmly:

"The reason is actually very simple. Through Porsche's willingness to bypass the German government, sue the European Court of Justice, demand the repeal of the Volkswagen Law, and succeed, I saw Porsche's determination to win over Volkswagen."

"There is another reason. Naked short selling of Volkswagen stocks has occurred in the German stock market. It is not uncommon. That is, some short sellers only need to make an IOU to a brokerage firm to sell Volkswagen stocks out of thin air in an attempt to make short-term arbitrage."

"But the public stocks circulating in the market are very limited, and almost all of them have been acquired long ago. In this case, if naked short selling becomes more and more intense, it will eventually lead to a short squeeze. Then the situation will be very exciting, and there may be many People lose their fortune overnight”

"Under the influence of dual factors, Volkswagen's stock will definitely soar to the sky, reaching one or two thousand

Euro per share, it is very possible to become the listed company with the highest market capitalization in the world.”

"Now let's go back and talk about the 100% premium I proposed. Do you still think it is high? I am basically certain that as long as I don't sell the public stock in my hand, there will be a short squeeze."

"what!"

With the exclamations coming one after another, everyone was stunned.

Model and Stern, who were sitting across the conference table, turned pale instantly.

The rest of the Germans were also filled with horror.

"Naked short selling, what kind of bastards are playing this crazy game? It's so abominable!"

"Oh my god! If there is a short squeeze, Volkswagen's stock price may really be pushed to the sky by countless short sellers. That is definitely not a good thing."

Many Germans started talking one after another, their expressions getting uglier than the last.

Contrary to them, Zhou Chaoyang and the others were so excited that they were almost flying.

They understand that if there is a short squeeze in Volkswagen's stock, it will be like playing it if the stock price rises several times!

In that case, Jiuye Investment's investment profits in public stocks will increase by more than ten times, or even dozens of times.

You know, the shares of Volkswagen held by Jiuye Investment are leveraged three to four times!

On this basis, the increase in investment income is simply a geometric progression!

From this point of view, Yao Yuan's offer of 100% premium is just like doing charity!

The Germans on the opposite side were all silent and remained silent for a long time.

The meeting, which was about to end, had to be extended by an hour.

In the blink of an eye, it was already around 12:30 noon.

The conference room door, which had been closed, finally opened.

A group of executives from Jiuye Investment who participated in the meeting, as well as many representatives of the German sovereign fund, walked out of the conference room one after another.

The last ones to walk out of the conference room were Yao Yuan and Stern, Vice President of the German Sovereign Fund.

Arriving outside the door, Yao Yuan took the initiative to shake hands with the German guy and said a few polite words.

"The meeting was very pleasant, Mr. Stern. I hope you can discuss a result as soon as possible. I hope we can successfully sign an agreement and reach cooperation this afternoon."

After the words fell, Stern nodded and said:

"Okay, Mr. Yao, we will discuss it when we get back to the hotel. We also need to report the situation to the country."

"If nothing else happens, we should be able to successfully sign a cooperation agreement this afternoon for mutual benefit and win-win results."

Next, Yao Yuan said hello to several other Germans one by one.

Afterwards, these German guys left Jiuye Investment Group and went back to the hotel.

As soon as they left, Mr. Zhao from the securities investment company immediately whispered:

"Mr. Yao, since you think there will be a short squeeze on Volkswagen's stock, is it too much of a loss to sell it to the Germans now?"

Yao Yuan looked at him, smiled and shook his head.

"A short squeeze in Volkswagen's stocks is only a possibility, not that it will definitely happen. This requires various conditions."

"One of the conditions is the number of shares held by the Lower Saxony state government. If they hold more than 25% of the shares, the short squeeze will not occur,"

"Porsche's shareholding ratio does not reach 75%, and it cannot directly control Volkswagen. This is a strange rule in Germany."

"Now that the Lower Saxony state government has begun to buy up public stocks everywhere, the possibility of a short squeeze is even lower."

"In this case, while we are making a lot of money, why not be a favor and further penetrate into the German financial market, killing two birds with one stone!"

Following his explanation, everyone suddenly understood.