My Age of Investment

   Chapter 1176 Porsche VS Volkswagen

   Hearing Xia Jingxing's words, Li Yaozu immediately called up a set of PPT files and started playing them on the large projection screen.

   "This is the stock price chart of Volkswagen in the last three years. The Porsche family began to covet the control of the Volkswagen Group three years ago, and then launched this snake swallowing elephant acquisition when everyone was not optimistic."

   Speaking of this, Li Yaozu smiled, showing his big white teeth, "I have to say, the Porsche family really has the spirit of a foolish man to move mountains!

  The acquisition was carried out by them for more than three years. Faced with so many difficulties and obstacles, most people gave up long ago, but they were not discouraged.

  Like ants moving house, all means are used together, and the balance of victory is tilted towards the Porsche family little by little.

  In 2005, they got 18.53% of the public stock;

  In 2006, the stake was further increased to 27.3%, becoming the largest shareholder of Volkswagen.

   However, this is not enough to control the Volkswagen Group, because German company law expressly stipulates that it is necessary to hold 75% or more of a company's shares in order to obtain control of the company.

   And Volkswagen, as a national car brand established under the call of the head of state, has a unique treatment in Germany.

   In order to prevent outsiders from buying Volkswagen, the German government specially promulgated a "Volkswagen Law".

   It is clearly stipulated that: when holding less than 20% of the shares of the public company, the voting rights are calculated according to the actual shareholding ratio; when the shareholding ratio exceeds 20%, the voting rights will not increase.

   In other words, although the Porsche family holds 27.3% of the shares and is the largest shareholder, the voting rights are only 20%.

   This also means that the Porsche family has been working hard for two years, but it still cannot substantively control Volkswagen, but is only one of the largest financial investment shareholders.

  If you want to completely solve this problem and truly control the public, you must increase the shareholding to more than 80%.

  If you hold 80.1% of the shares, the voting rights are still only 20%. .

   However, there are only 19.9% ​​of the external outstanding shares, and only 19.9% ​​of the corresponding voting rights.

  20% to 19.9%, the Porsche family wins!

   But can Porsche buy 80% of Volkswagen?

   Obviously not possible! Because the state government of Lower Saxony, where Volkswagen is headquartered, holds a 20.1% stake in Volkswagen.

   No matter how hard Porsche works and how much it pays to buy stocks in the market, in theory, it can only acquire 79.9% of Volkswagen's stock, and cannot reach the 80% holding line.

   Even so, it failed to repel Porsche's determination to acquire Volkswagen.

In 2007, Porsche sued the European Court of Justice, saying that the "Volkswagen Law" violated the EU's "Fair Trading Law", and that this commercial law is higher than the economic-related laws of EU countries, which is not conducive to market competition, which is against the spirit of liberalism. trampling and so on.

  Other EU member states have long disliked the "VW Law", so they pushed it forward. Although Germany was also fighting for it during the period, the European Court of Justice finally ruled that the "VW Law" was invalid.

   This has cleared all the obstacles for Porsche to acquire Volkswagen. It only needs to reach the 75% holding line like holding ordinary German companies.

   But is Porsche really capable of buying the Volkswagen Group? "

   At this time, Li Yaozu changed a set of PPT pictures, pointed to several bar charts and said, "This is a comparison picture of the sales revenue and net profit of the two companies in recent years.

   It can be clearly seen that in 2005, the annual sales revenue of Volkswagen was equivalent to 30 times that of Porsche.

   However, as a luxury car brand, Porsche has a high profit margin, with a record net profit of 6.4 billion euros last year.

   Perhaps it was this confidence that strengthened the Porsche family’s determination to acquire Volkswagen.

   In 2007, Porsche's shareholding in Volkswagen was further increased to 31%.

   This year, Porsche leveraged billions of euros to raise its stake in Volkswagen to 51% at the end of June, including part of the stock and part of the options.

   By this time, all of Europe believed that Porsche was really moving to buy Volkswagen.

   Porsche's large-scale acquisitions this year have also caused Volkswagen's share price to rise all the way, reaching 200 euros last month.

   Then the global financial tsunami broke out, and it failed to stop its share price from rising. At the beginning of this month, the share price rose to 400 euros, and the market value exceeded 100 billion euros.

   In the past two weeks, all shorts have been shorting Volkswagen's stock, and at the same time spreading all kinds of news that are not conducive to the public, all believe that its stock price is too abnormal and has far exceeded the actual value of the Volkswagen brand. "

  Xia Jingxing smiled slightly, "Actually, they are right, the current public is not worth more than 100 billion euros, and shorting it is also a normal move.

   Now that European countries and even the world are banning short selling of financial stocks, the stock price of Volkswagen has risen so outrageously, it has naturally attracted the attention of hedge funds from all walks of life.

  Where there are profits, there are hedge funds. "

  Li Yaozu spread his hands with a smile, "In the context of the outbreak of the financial crisis, everyone thinks that Porsche may have to temporarily stop its acquisition of Volkswagen, and its shareholding ratio has stopped at 51%.

   If it weren't for Xia Sheng's repeated warnings, I might not be able to resist taking advantage of it. "

  Xia Jingxing smiled and shook his head, "We don't have any money to take advantage of, all the bullets have been emptied."

  Li Yaozu smiled and said, "Didn't the American team support us with another 1 billion dollars?

   These days, the stock price has dropped from 400 euros to 210 euros as the bears are shorting Volkswagen one after another.

   We took all of the 1 billion US dollars, or about 742 million euros, to subscribe for 3.53 million public call options, accounting for about 1% of the public's total equity.

   In addition to the Volkswagen shares and options that have been purchased successively, we currently hold a total of 3% of Volkswagen's total share capital. "

  Xia Jingxing frowned a little, he only had so little stock, it felt a little too little!

   However, considering the current situation, it is indeed not suitable for the opening and closing of operations.

  Whether it's alarming the bulls of Porsche or a vote of hedge fund bears, unpredictable things can happen and the final action will fail.

   Xia Jingxing asked, "Anyone else buying options for the public besides us?"

  Li Yaozu shook his head and said: "According to the regulations of the Frankfurt Stock Exchange, if the purchaser of stock options is willing to pay the premium according to the full price of the stock price, he can decide for himself when to announce the number of his options holdings.

  Whether the Porsche family has a lot of purchase options, no one can say for sure.

   If the proportion of holding the underlying stock exceeds 30%, the position change of each transaction must be disclosed.

  According to the previous information disclosure, the proportion of Volkswagen's shares held by Porsche has remained at 42.6%, and has not increased since then. "

  Xia Jingxing nodded lightly, this option was actually a bug.

  The premium for individual stock options in the United States is very cheap, and the stock price is as high as tens or hundreds of dollars. The premium or option fee is usually only a few dollars, or even in cents.

   What Li Yaozu said about "paying the royalties in full according to the stock price" means paying the royalties at the current stock price.

  Like the 3.53 million options purchased by Vision Capital this time, the option premium is paid at the current price of 210 euros per share.

   This option is a bit useless!

   is equivalent to spending 210 euros to buy a future fixed price of 210 euros to buy the option seller, that is, the right of the counterparty to hold the public stock.

   There is no doubt that the risk and reward are a bit disproportionate, and there is little room for arbitrage - of course, this refers to the general situation.

  If the stock price of Volkswagen falls below 210 euros and the exercise of the option is abandoned, the entire investment of 210 euros multiplied by 3.53 million shares will be lost, and the option will become waste paper.

   If you choose to exercise the option, the option fee will not be refunded, and additional exercise costs must be added, such as "buying a stock whose stock price has fallen to 200 euros at a price of 210 euros", even more loss!

  The only chance to make money is for the stock price to rise sharply and continue to rise on the basis of 210 euros.

   Considering that although the market value of Volkswagen has fallen a little, it is still nearly 80 billion euros, and the possibility of the stock price rising again is very small.

   Selling call options is actually short sellers using option tools to short the public.

   "You said, what would happen if the Porsche family bought options that accounted for more than 30% of Volkswagen's total share capital?"

   Xia Jingxing's words made Li Yaozu stunned for a moment, then he responded with a look of astonishment, "You mean..."

  Xia Jingxing nodded with a smile, "This is called Mingxiu Plank Road, Darkness Chencang! Do you think it is possible for the Porsche family to have learned the Chinese art of war?"

  Li Yaozu did not respond to the boss's jokes. He was now thinking about the actions of the Porsche family. His heart was pounding, and he even felt short of breath.

   Because he smells the euro!

   (end of this chapter)