Rebirth of the Financial Overlord

Don't you have any clues in your mind?

William secretly slandered in his heart.

Before 1987, Rolls-Royce was 100% owned by the British government.

It was not until Mrs. Thatcher came to power to promote the privatization of private state-owned enterprises that the British government listed Rolls-Royce with a total share capital of 801 million at a rate of 1.7 per share. All were sold at the price of sterling, and only one gold share was retained, which is the special rights share.

never had.

This does not seem to fit the definition of a free market in the UK.

With the value of Rolls-Royce, who doesn't want to fully control it, how could there be no actual controller.

But the word freedom itself is a false proposition.

Any country, whether it is speech or behavior, is bound to be subject to certain constraints.

Although the United Kingdom is an old capitalist country and is also known as a free market country, it still has various protection policies in terms of trade and economy.

The British Securities Commission stipulates that the equity of any individual or legal person must be announced to the public. If you hold more than 23% of the shares, you must bid to buy all the shares.

And the one gold share held by the British government can be understood as imprisonment.

It means reserved special rights.

Specifically reflected in: without government approval, Rolls-Royce cannot be merged by any other enterprise or amend the company's articles of association; foreign shareholders can't hold more than 29.5% of the shares; Five of the board members must be British citizens.

These points alone are enough to eliminate the possibility of any foreign capital controlling Rolls-Royce.

If that wasn't enough, Rolls-Royce's management mechanism has several layers of insurance.

If the shareholding ratio stipulated by the Securities Commission exceeds 23%, all the shares must be purchased through bidding, so that there is no absolute controlling shareholder in any company in the UK.

Of course, this also includes Rolls-Royce. Even Rolls-Royce was forced to buy all the shares of Bentley when it bought Bentley.

According to the regulations of the Securities Commission, Rolls-Royce is as dispersed as other listed companies. The total number of shareholders exceeds 500,000, most of which are minority shareholders and a few are major shareholders. Among the few major shareholders, 15 public funds own more than 40% of the total shares of Rolls-Royce, and the largest fund holds about 15% of the total shares.

Since the shareholding is quite scattered, and the major shareholders are fund institutions that do not directly intervene in the operation and management of the company, this means that there are no major shareholder representatives on the company's board of directors, and no individual shareholder has control over the board of directors.

In the United States, the chairman and president often work concurrently.

But in the UK it's different.

The highest management body of Rolls-Royce is the board of directors, which consists of thirteen members, including eight executive directors and five non-executive directors. The managing director is a full-time salaried manager in Rolls-Royce, including the chairman, president and directors of various departments.

The five non-executive directors are all part-time external employees, most of whom are senior managers of other companies, university experts and professors, and even retired politicians. They are responsible for supervising and evaluating the work of the chairman, president and other executive directors, deciding their remuneration and submitting a list of candidates for annual director re-election to the general meeting of shareholders.

It can only be similar to that of other national supervisory boards.

According to Rolls-Royce's Articles of Association, the term of directors is three years, with one-third replaced each term and re-elected.

How can such a company be controlled?

There is simply no way to control it.

Shen Jiannan, a native of Huaxia, blocked all roads on the point that foreign shareholders should not hold more than 29.5% of the shares.

Even in the name of other shareholders and funds, the special authority held by the British government has blocked the way again.

What's more, there are constraints and constraints from the company's management.

Anyway, William thought about it for a long time, and he didn't understand what the point of buying Rolls-Royce's stock was. It's better to go to other companies to get a wave of prices and cut some leeks.

There is absolutely no loophole to exploit!

Boss, I don't think it's meaningful for us to buy Rollo's stock. Apart from helping them get out of trouble, we may not get any benefits. Do you want to eat their dividends? They had the highest profit margin last year , it’s only five pennies, and I don’t think it’s a bad money-losing product anyway.”

William, didn't I tell you that in the capital market, nothing is impossible, only everything is possible?

When did you say that?

We don't have the super power to change those rules.

Congratulations, you're right. We don't have superpowers, but we do have money.

.

After hanging up the phone, Shen Jiannan walked to the balcony of the office with a cigar in his hand.

In William's eyes, Rolls-Royce's management mechanism is naturally impeccable. In other words, for people of this era, they cannot find the control loopholes in Rolls-Royce's company.

But these, for a hooker thirty years later, are not yet pediatrics.

In the past 30 years, major companies around the world have performed countless times of contests between capital and the government, and how many times of hostile takeovers and mergers have been staged.

It's not that complicated at all to take control of Luo Luo.

What's more, even if Rollo-Royce doesn't have absolute control, with the depreciation of the pound, the British economy will soon be stimulated to grow, and Rollo-Royce's stock will also rise exponentially. .

But if you win it, it will be a great benefit.

Probably because of the rain, today's weather looks exceptionally clear, with blue sky and white clouds in the clear sky, and with the breeze blowing by, it makes people feel very comfortable. ,

Gently exhaling the smoke from his mouth, Shen Jiannan looked towards the southeast direction, bursts of sparkling colors flashed in his dark eyes.

Who could have imagined that this era is an era in which the way of heaven is reversed and the universe changes.

In this battle for national destiny, who would have thought that the eyes of a rabbit that is harmless to humans and animals will become brighter and brighter.

Night gradually came.

As night fell, the night sky gradually enveloped the entire city of London.

But it didn't become dark here. With the lighting of various neon lights and street lights, it looked like a night pearl floating on the sea.

London's upper-class residential area, Mayfair Park Road.

Grosvenor House Hotel is like a shining golden dragon. Under the golden light, the Georgian architectural style makes people feel its elegance, luxury and style without going in.

Under the bright lights, from the entrance of Hyde Park to the hotel gate and the parking lot, police cars with flashing lights patrolled or parked nearby in twos and threes, and many policemen in uniform or plainclothes were vigilantly sweeping around.

Even the Metropolitan Police Service couldn't get off work on time as usual, and had to pay attention to the security situation near the Grosvenor House Hotel.

Because, there will be a top-level party here tonight. Celebrities and multinational businessmen from many countries around the world will gather here. No one dares to let any accident happen here.

Barty. Do you know who those bastards are?

Do you need to ask? I knew it at a glance. It must be the private bodyguards of those rich people.

These damn rich people are so afraid of death. They already have so many bodyguards here, and they still want us to protect their safety. I'm already off work, but I still have to work overtime here.

.

Not far from the entrance of the hotel, two policemen sat in a police car and complained that they had to be sent to work overtime during off-duty hours.

Unfortunately, their complaints were ignored at all.

For those who make them work overtime, the overtime of the police is not worth mentioning at all compared with the current economic situation.

The French franc has come under enormous pressure during the week of sterling's depreciation, with French Finance Minister Michel Sapin even publicly suggesting that troublesome currency speculators be guillotined.

Neighboring Belgium is also having a hard time. Foreign Minister Willie Kress even said that the UK condoned the reckless behavior of currency speculators, allowing those financiers to plot to divide Europe.

Of course, he would not admit that this was because the Belgian franc was attacked by international speculators during the day. Although the price of the Belgian franc was finally protected by raising interest rates, Belgian banks still lost three billion francs.

And the IMF writes about the resulting capital inflows into ERM countries:

One of the important factors promoting capital inflows is that international investors increasingly believe that ERM member countries are in the process of moving closer to the European currency unit. Interest rate differentials will increasingly overestimate the real risk of exchange rate depreciation.

As one portfolio manager put it: Why hang on to the yields on West Deutsche mark government bonds when you can get higher yields on peseta or lira government bonds without compensating risk? ?”

However, an alternative view of the fixed exchange rate assumption is that the risk of trading positions against non-EERM currencies is usually avoided through alternative hedging.

For example, when Lira securities are acquired, a Deutsche mark position is hedged against the US dollar.

The favor for convergent deals can be seen almost everywhere.

One securities portfolio manager claimed that it was viewed as the equivalent of government-sponsored hedging.

The ERM has fueled the astonishing popularity of a new class of money market mutual funds that trade high-interest short-term securities of foreign governments.

Morningstar estimates that between 1989 and 1992, these funds attracted more than $20 billion in investor capital.

The main securities investment behavior of these funds is convergence trading.

As for the overall size of market positions, the IMF reported: A rough estimate suggests that the total size of the converged trade could reach $300 billion.