1%!
This commission does not sound high. Many real estate agents still charge 2% to 3%, and the agents of celebrities and athletes get a higher commission. Some of them even earn more than the celebrities.
But it depends on the returns the agent gets. The more the agent earns, the lower the commission. The less the agent earns, the higher the commission. This is to protect the agent's interests.
If you earn 100 million a year, and I take 2%, that's 2 million. If you earn 10 million a year, and I take 10%, that's only 1 million. The higher the total amount, the lower the commission.
But this time, 1% is too much for Kirilenko to accept.
Although Rio Tinto Group's share prices had dropped, and its market value is only slightly more than 100 billion USD, its actual value is still around 150 billion USD. It's wishful thinking to acquire this company for 100 billion USD.
Even if the transaction value is 150 billion USD, 1% is … 1.5 billion USD!
A middleman got away with 1.5 billion USD without paying a cent. How can Kirilenko not be heartbroken? Even the World's Second Richest Man cannot let go of 1.5 billion USD.
Although it's not free, it's too much. When the middleman from CAA acted as Sony's middleman for 40 million USD, it shocked the industry.
Although it's still early, it's about 100 million USD based on inflation.
But how can 100 million USD compare to 1.5 billion USD? The difference is 15 times!
1.5 billion USD is an unprecedented amount. Making history is not something to be proud of.
Some people might think that the Rothschild Family had to gather a lot of information and participate in the negotiations. They must have organized a large team and spent a lot of money.
But the Arctic Bear Minerals Group is the one paying for the negotiations. The Rothschild Family had to pay extra for the negotiations, and this 1.5 billion USD is their net profit.
In fact, the Rothschild Family might have made more than this amount. It's normal to get a premium when acquiring a profitable company.
If not, why would my company sell it to you at such a low price when my company is making profits every year?
For example, if you own a 3 million USD restaurant, and the annual profits are around 300,000 USD, the other party will ask for at least 3.5 million USD, or even 4 million USD. Unless the buyer is in urgent need of money, no one will sell the restaurant for 3 million USD.
Rio Tinto Group is not in urgent need of money, and Hua Xia Aluminum wants to work with them to buy their bonds and set up a joint venture.
"Feng, they are asking for too much. This is daylight robbery. Let's change to another bank. How about Goldman Sachs? They are influential in Europe, or Citigroup, HSBC, etc."
Kirilenko felt the Rothschild Family is asking for too much. They know they had made a lot from the oil futures deal and want to take advantage of them.
Perhaps the Rothschild family didn't know exactly how much money they made, but now that the two of them were going to take over the world's top mining group with a real value of 150 billion USD, and it was a cash acquisition, how much money did they make this time?
Although they might be asking the Polar Bear Mining Group to raise funds, how much can they raise? Thirty billion USD is not enough, right?
Even if they take a step back and only control Rio Tinto Group, it will still be around 70 to 80 billion USD. Kirilenko and Kirilenko need at least 40 to 50 billion USD in cash. They had made a lot of money this time.
Although Feng Yu did not announce how much his two companies had increased their assets, Kirilenko had announced it. That's why he is ranked second on < Forbes > World's Billionaires list. He is still behind Feng Yu.
Based on their analysis, Kirilenko is not good at investing, and Feng Yu is the one leading this deal. That means Feng Yu's investments will be higher than Kirilenko's, and his profits should be higher.
Although there are rumors that Feng Yu had raised a lot of funds in the US stock market, Kirilenko and the Rothschild Family had met Feng Yu before and knew Feng Yu is the one who decides the direction of their investments. That means Feng Yu's profits will be higher than Kirilenko's.
Kirilenko's assets had increased by so much, and Feng Yu's assets will increase even more.
A few days ago, Feng Yu had acquired London's Western Commercial Bank. He had spent 8 billion British Pounds, and Feng Yu had announced that he will invest another 10 billion USD to turn the bank's losses into profits.
Although the 8 billion British Pounds had not been spent, it had been sealed in the bank's accounts. Feng Yu is going to do something big again. Kirilenko and the Rothschild Family realized that Feng Yu does not like his companies to be listed. He is the same as many of Europe's ancient families.
If not, Polar Bear Minerals, Tai Hua Supermarket, etc. should have been listed a long time ago. These companies should also be listed to raise funds for their further development.
If the Polar Bear Mining Group does not want to issue shares this time, that means Feng Yu and Kirilenko have at least 80 billion USD in cash! This is insane!
Kirilenko felt that Kirilenko and the Rothschild Family had shown that they are determined to get the shares, and this gave the Rothschild Family the courage to ask for high commissions. Kirilenko and the Rothschild Family had worked together a few times, and Kirilenko had even worked with some of the Rothschild Family.
1%? How can they dare to ask for such a high commission?!
Kirilenko thought Kirilenko will ask for 2% to 4%, and even 5% is too high. But now, Kirilenko is asking for 1%. This is more than double of what he expected. He is panicking.
If he spends a few hundred million USD, he can paste a layer of purple gold on the roofs of all the buildings in his manor!
"Brother Ki, have you told them that we are going to fully invest in Li Tinto Group?"
"I said we will try our best to fully invest in this company. If not, we can also give them 50% of the shares."
"Go and speak to the Rothschild Family. Tell them that we must fully invest in this company, and I had negotiated with Hua Xia Aluminum for 9% shares. We had also bought more than 7% of the shares in the stock market. Ask them to re-quote their prices."
"If we are only going to be the controlling shareholder, why are we wasting so much effort? After we become the controlling shareholder, everyone can tell that this company's share prices and profits will rise. What we will do next will let the company make more profits. Will those shareholders still sell their shares? "
"If they want to buy, buy all the shares. Those management personnel can only get some dividends for now. We can only decide if they want to reward them with shares based on their performance."
"If the Rothschild Family still wants 1%, then contact someone else." The commission is higher than what Feng Yu wants, and he is also reluctant to part with the shares.
… …
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