In just a few days, several listed real estate finance companies had suspended trading. Their share prices fell too fast and could not be stopped.
Seeing this, Feng Yu was not very happy. It was not because he did not short these companies' shares, but because Feng Yu did not see the scene he wanted to see, which was Fannie and Freddie Group coming out to take over.
If Fannie and Freddie Group did not come out to take over, then there would be variables, and it would greatly affect Feng Yu's plan.
It seemed that these companies that applied for bankruptcy protection were not big enough, and their market value was not big enough. The impact was not big enough. There must be a company that applied for bankruptcy protection to prompt Fannie and Freddie Group to take over quickly.
Feng Yu had already chosen this company. It was New Century Financial Company, the second largest subprime loan company in the US.
However, this company had released a lot of negative news, and its share price had been falling, but it still had not suspended trading!
The impact of this company was too big, and the company did not dare to suspend trading easily. Also, some people were thinking of ways to use money to save the market.
Now, there are some negative rumors about Feng Yu in this world.
It was said that Wind and Rain Holdings had too much money to spend, and Feng Yu was interested in New Century Financial Company and wanted to acquire it.
Thus, Feng Yu came up with these negative news and was preparing to buy New Century Financial Company's shares at a low price. This was clearly a hostile takeover!
A company that was taken over by a hostile takeover would generally change the management and fire a large number of employees. Feng Yu was hurting everyone's interests.
However, there was a paradox in this news. Many of New Century Financial Company's shares were in the hands of shareholders and were not circulated in the stock market.
Even if Wind and Rain Holdings could buy all the shares in the stock market, it would not be more than 50%. It was impossible to become a controlling shareholder. To complete a hostile takeover, the shareholders must be willing to sell their shares to Wind and Rain Holdings.
This way, Wind and Rain Holdings was bound to increase the purchase price. This was also a profit for the shareholders, and they should support it. Feng Yu did not hurt their interests.
It could be said that it was because the share price had fallen, but once it was proven that Wind and Rain Holdings was buying New Century's shares, the share price could rise at any time.
Who doesn't know that Wind and Rain Holdings is Feng Yu's company? Feng Yu's company will make money no matter what it does. If Feng Yu acquires New Century Financial Company, this company will surely make a fortune.
At this time, Ralph also came out to explain the situation. Wind and rain Holdings Group had bought some shares of New Century Financial Company but had quickly sold them. This was because they felt that the company was going to go bankrupt soon and the shares would become worthless paper!
When this statement was made, it immediately caused an uproar. Especially the shareholders of New Century Financial Corporation. They immediately retorted publicly, saying that Wind and Rain Holdings Group was suppressing their shares. It was clearly a hostile takeover, and they strongly disagreed.
Furthermore, their company will not go bankrupt. If the investors continue to invest in their company's shares, they will definitely give the investors handsome returns.
However, not many people believed such a statement.
On one side, it is Wind and Rain Holdings Group, a world-renowned conglomerate. It is also the God of Investment, Feng Yu's company. On the other side, it is New Century Financial Company, whose share prices kept falling. Why does this statement sound like a last-ditch struggle?
But after this incident, New Century Financial Company's shares fell even faster, and the shareholders wanted to cry.
Last year, there were many people who wanted to buy their shares, but none of them sold. They felt that this is a good investment and will make more profits in the future.
But this year, the trend had changed, and the shareholders knew that the company had suffered a lot of losses. Originally, even if they were to make a loss, they could still survive by issuing additional shares or issuing more bonds.
But the sudden appearance of so much negative news in the media caused the shareholders to fall to the bottom.
The shareholders do not know when they had offended Wind and Rain Holdings Group or Feng Yu. Why are they targeting them? New Century Financial Company is only a financial company with a market value of less than 3 billion USD. Compared to many of the Wind and Rain Holdings Group's subsidiaries, it is not worth mentioning.
After this incident, their market value had fallen to only a few hundred million USD, and it will continue to fall.
At this time, the shareholders had to think of ways to suspend their shares and stop their losses. After that, they will think of ways to get some good news to pull their share prices back.
But after thinking for a long time, the shareholders could not think of any good news. Unless a large sum of money is invested, they can only save the company. But that will require a few billion USD. Who has billions of USD to invest in a company like theirs?
Since the negative news was published, their property loan default rate had exceeded 50%!
This means they will not be able to get back more than half of their money back. Which legal financial company does not have 100% profits from their loans? If they cannot get back more than half of their money, their capital chain will be broken.
The shareholders can tell that they only have one solution at this time. That is to apply for bankruptcy protection. If not, things will get worse, and the company's value will drop. Even if the shareholders are not willing, they have no other choice. If they apply for bankruptcy protection, they will have a chance to catch their breaths.
Under this situation, New Century Financial Company had to apply for bankruptcy protection. Their company's share price had fallen to the bottom, and their market value is less than 100 million USD!
New Century Financial Company announced that they will sell most of their assets, including loans, securitized equity, etc., within one and a half months. They will also sell their stores, business outlets, application centers, service platforms, etc., including their computers and other equipment.
Of course, they still have to fire more than 3,500 employees. But this does not include those brokers and staff who deal with loans and mortgages.
That means to fire more than 3,500 insignificant staff. This shows how heavy the burden on the company is. There are more than 55,000 brokers and staff who deal with loans and related affairs. These people are considered the company's assets, and they are considered high-quality assets.
This way, the shareholders' rights will be guaranteed, and the blame will be thrown away.
Who will take the blame? It should be Fannie and Freddie Group.
When Feng Yu saw this news, he finally smiled. The plan is a success, and he can rest assured.
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