"What did you say? Someone is buying Amazon, Google, and other companies' shares at low prices?"
To make higher profits during the financial crisis, Feng Yu, Kirilenko, and the rest had sold their subsidiaries' shares at high prices to raise more funds.
Although they can use their shares as collateral, Feng Yu had asked around and found out that they can only pay 70% of the company's market value. This is much lower than what Feng Yu expected, and they still have to pay high interest.
That's why Feng Yu decided to sell off his non-voting shares to raise more funds.
Among the companies, IT companies are the most popular. This is because these companies are the most vulnerable during the financial crisis.
During a bull market, IT companies' shares will shoot up. For example, Microsoft, etc. will perform well during a bull market. But during a bear market, the market leaders like Microsoft will fall.
Amazon and Google are the leaders in their respective industries. When their shares rise, they will rise quickly. When their shares fall, they will also fall quickly.
Selling off their shares and buying them back when their shares hit rock bottom is a good choice. Even if Feng Yu sold off his shares, the founders and Wind and Rain Holdings will still own more than 51% of the company's shares. They also own more voting shares, and the board of directors will not have any problems.
Feng Yu is confident that Amazon, Google, and other companies' shares will recover. But now, someone is buying off his company's shares at low prices. Are these people trying to take advantage of the situation, or are they trying to overturn the company?
If an organization owns about the same number of shares as Wind and Rain Holdings and roped in the founders' shares, the company might not have the final say.
"What about Kirilenko's eBay and other companies?" Feng Yu asked again.
He had asked Kirilenko to sell off his eBay shares. If his company's shares were overturned because of this, Feng Yu will become a useless advisor.
Although Kirilenko had made a lot of profits this time, eBay was definitely a good stock for long-term investment. It was also suitable to be passed down to his children. Kirilenko had spent a lot of effort on eBay. If someone else snatched the controlling shares away, Kirilenko would go crazy.
"There are similar cases, but they are all very low-key and scattered in multiple investment accounts. However, we can be sure that several large consortiums in Europe and America are involved."
These subsidiaries in the United States all had large American consortiums as shareholders. This was the result of compromise. Otherwise, not to mention going public, their operations would be hindered.
Now it seemed that the shareholders were ready to increase their speaking rights. If they were allowed to do as they pleased, it was uncertain who would have the final say in the subsidiary company in the future.
"Alright, I got it. Continue to pay attention and prepare the funds. We're going to start buying back shares!"
After hanging up the video call with He Zhaoji, Feng Yu contacted Ralph.
Ralph's face quickly appeared on the screen. He was sitting behind his desk. There were many documents scattered on his desk, and he seemed to be busy.
"Boss."
"Yes. Ralph, you have been paying attention to Europe's business these few days, right? Have you been paying attention to the US side?"
"Boss, are you talking about the frequent trading of Amazon and other subsidiaries' shares? I had just found out about this, and I had arranged for my men to investigate. I was about to report to you. "
Ralph knew about it and took some measures to deal with it, so he didn't neglect his duty.
"What do you think about this?"
"Boss, I think the other shareholders of the subsidiaries are going to increase their shareholding in the company. Although there are a few directors from large consortiums in those subsidiaries, we, Wind and Rain Holdings, are the ones who have the final say. "
"I'm afraid those big consortiums aren't willing to just be idle shareholders receiving dividends. They want to increase the authority of their directors. They even plan to rope in the founders and other executives of the subsidiary companies and make us, the major shareholders, a mere figurehead!"
This was the reason why Feng Yu does not like to get his company listed. If the company issued too few shares, it was not worth getting listed. If the company issued too many shares, it will not be able to maintain its absolute controlling stake or even more than half of the company's shares.
As Wind and Rain Holdings had cashed out a lot of non-voting shares and preferred shares, they only own slightly more than 40% of Amazon, Google, and other companies' shares. Although they were still the biggest shareholder, if the other shareholders and those consortiums formed an alliance, they might lose control of the company, even if Wind and Rain Holdings owns more than half of the company's voting shares.
This was a complicated legal situation, but Feng Yu does not need to care about it. He only wants to buy back some shares and ensure that Wind and Rain Holdings owns more than 50% of the company's shares.
If possible, it would be better to own more than two-thirds of the company's shares.
This was also the problem when investing in other countries. If you are not satisfied with your partners and want more, what should you do?
If it was the Feng Yu a few years ago, he might have to compromise and give more shares to the local consortiums.
But it's different now. Feng Yu's personal assets had increased to a high level, and he still has Kirilenko and the other partners. He also has the country's support. Feng Yu is not worried about those financial groups doing anything to him.
"Ralph, discuss this with Kameda Masao and come up with a proposal for me."
Feng Yu immediately informed Kirilenko about this and asked him to discuss with his team on how to deal with this situation.
At the same time, Feng Yu also asked Zong Qingxian and the rest to monitor if Taihua Holdings's Hong Kong listed subsidiary shares were being acquired secretly.
Don't think that nothing had happened just because the share prices did not rise. Feng Yu must pay attention to the turnover rate.
After Ralph and the rest analyzed the situation, they gave Feng Yu two answers. First, those companies were trying to increase their shares to have more say in the company. Or, they were interested in the company's potential and wanted to increase their profits. The other possibility was these companies were purposely buying up the company's shares to subvert the company's authority. This way, they will lure Wind and Rain Holdings to compete with them and increase their share prices.
This way, they can sell off the shares that they had bought at low prices. This is equivalent to Wind and Rain Holdings helping them to make money.
There were two possibilities, both of which could be true, and there was also a possibility that the other party had prepared both ways. If they can acquire enough shares, they will buy them like crazy. If not, they will sell off the shares at high prices after the share prices rise.
Feng Yu was pondering. Which is their real motive?
… …
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