American Fortune Life

At 10 am on December 26, 2008, at the Rockefeller Center in Manhattan, Andy Smith, who had just rushed back to New York from Houston, held a press conference and officially announced that he planned to acquire Qualcomm for US$41 billion. As soon as the news came out, he was shocked immediately. Global technology industry.

Andy Smith proposed to buy Qualcomm for $35 per share in cash, involving a total value of $41 billion. As of press time for various media, Qualcomm's stock price rose more than 3% before the market.

The stock prices of several banks and investment banks that participated in the acquisition and helped Andy's margin financing and securities lending also began to change their downward trend and rose slightly. However, what Andy didn't expect was that the stock prices of his two listed companies, GUESS Apparel and Starbucks, were also affected by the news and rose accordingly.

Once this transaction is successful, it will not only be the largest acquisition in the history of the global semiconductor industry, but also make Andy Smith a giant who dominates many chip fields, consolidate his wealth foundation, and may even directly affect Apple and various smartphones. The supply chain of the mobile phone giant has an impact.

Behind this high-priced acquisition plan that may subvert the structure of the semiconductor industry, Andy Smith, a 24-year-old talented writer, media giant, and super rich man, has once again become the focus of the world's news media and IT industry.

Although it is still uncertain whether the acquisition can really be completed, the acquisition of Qualcomm is in line with the character of Andy Smith's "acquisition maniac" in the past two years.

It seems that there is no sign, but in fact, it has been planned for a long time. When a sudden attack occurs, it will be followed by a strong cash force. As an opponent, it may have no power to fight back.

The example of Starbucks is there, making everyone unconsciously think that it is only a matter of time before Andy Smith's acquisition succeeds.

An hour after Andy's press conference, Qualcomm responded that it would review the proposal and act in the best interest of shareholders.

Immediately accepted an interview with the TV media, the implication is that Qualcomm is not willing to be acquired, and Qualcomm can create a new round of value for shareholders by relying on its own strength.

However, everyone, including Qualcomm itself, knows that this is just their wishful thinking. For Andy Smith, who has made every commercial move in the past two years, the ideas of the acquired parties are useless at all.

Especially with Starbucks and NBC Universal's management shock after he took over, the young rich man's strong and decisive impression has been deeply rooted in the hearts of the people.

Originally, the management of Qualcomm wanted to express its rejection of Andy Smith, a young rich man who does not understand technology, in an interview with the media. The spokesperson of Gaia Company announced that instead of Andy Smith, it currently holds 15.7% of Qualcomm. After the stake, everything died down.

Everyone knows that even if Andy Smith truly privatizes Qualcomm, no one can stop him from entering the Qualcomm board of directors, and offend a major shareholder, unless the management of Qualcomm is squeezed.

So now, the ball has been kicked to Qualcomm's board of directors, and Qualcomm CEO Paul Jacobs, who just expressed in the media that he does not welcome the acquisition, was slapped hard on the face.

Andy Smith said with practical actions, if you don't want to be acquired, I won't acquire it? Think too much, I have no intention of talking to you at all!

Andy's spokesperson officially announced at the media press conference that he directly launched a takeover offer to shareholders, which officially turned into a hostile takeover!

Black knight!

Barbarians at the door!

"Everyone, I hope that all shareholders can remain rational. Even if the stock is to be sold, the purchase price of $35 is not the final price. Believe me, our stock price has reached as high as $56.

Dear shareholders, although accepting the other party's "hostile takeover" can make short-term profits, it is contrary to the long-term development of the company.

Qualcomm is currently in the sensitive and critical period of transition from 2G to 3G, and has established a series of human capital,

Supply and marketing network, debt relationship, etc. are closely related to strategic stability. If these arrangements are interrupted by short-term profit motives, it will definitely affect the overall development efficiency.

Last year, we became the number one in the industry. Please believe that Qualcomm has a huge opportunity to create significant added value for shareholders and welcome the next stage of profit growth together. . . "

In the conference room of Qualcomm headquarters in California, the son of the former CEO of Qualcomm and the company's co-founder Alvin Jacobs, the current CEO Paul Jacobs, urgently convened the members of the board of directors, and persuaded the major shareholders in the form of video conferences.

He had to do this because a number of holding institutions had begun to sell their Qualcomm stocks, and these sold stocks were like being thrown into a black hole in the universe, and they were wiped out as soon as they appeared.

Everyone knows that the black hole is the acquisition team of Andy Smith, who is not short of money and holds a lot of cash in his hands.

"Paul, what is your solution?" Thirty video windows were displayed on the super-large LCD screen, and the first to ask was the Blackstone Group.

"Initiate a "poison pill plan" counterattack in accordance with the rules of the US capital market. A large number of directional new shares will be issued to dilute the proportion of shares held by the other party, thereby increasing the capital cost and ultimate income required for the acquisition..."

As soon as his words fell, it aroused doubts and vetoes.

"This plan won't work..."

"Once the poison pill counterattack is launched, Qualcomm's rating will be lowered, and the stock price will plummet. We will not bear this loss!"

"I object!"

"I object to this plan..."

. . . . . .

Paul Jacob's heart skipped a beat, his face remained unchanged, but his heart was cold. He knew that the most effective countermeasure was completely abolished by his shareholders.

Benefit!

Sure enough, in the eyes of these investors, their respective interests are the most important. As for who helps them control the company, they don't care, and they don't have much respect for their CEO.

To put it bluntly, Qualcomm at this time is no longer the property of their Jacob family, and he is just a senior wage earner with some shares.

Listening to the strong opposition from the shareholders, Paul Jacobs and the members of the board of directors made eye contact with each other, and they all saw deep worries in each other's eyes. As for

The other is that the management agrees to resign collectively, not to mention the plan to increase the operational risk after being acquired. This group of shareholders will never agree to mess up the company.

"Paul, you should just say it straight. I believe you have a better plan to fight back. If it is feasible, we will support you." The shareholder representative of Pioneer International Group said.

As soon as these words came out, the originally noisy discussions fell silent. They all looked at Paul Jacob in the first seat of the conference room through the cameras, and each of them waited for a better plan from the other party, to see if it would be possible. Let them maximize the interests of these shareholders.

"Well, first of all, I'll be on the phone with Andy Smith, contest his offer, pull up the offer.

At the same time, it united with various partners to speak out against the acquisition of Andy Smith, a layman.

Then there are means of mobilizing funds, planning stock repurchases to increase the stock price, and substantially increasing the performance targets for the 2009 fiscal year, hoping to make Andy Smith quit. . . "

Tsk tsk, in order to protect his property from hostile takeovers, Paul Jacobs can be said to have exhausted all kinds of tricks.

"Yes, I think it's doable..."

"These plans are good, I support..."

"$35 is really undervalued..."

"Where does the repurchase funds come from? Is it mobilizing overseas funds? What about the high taxes..."

"Should I consider taking out some overseas cash for dividends?"

"Significantly increase the performance target for fiscal year 2009. What if it cannot be completed? Who will be responsible? Under the financial turmoil, can it really be completed?"

Wu Yang Wu Yang's comments made Paul Jacob and the members of the board of directors all look solemn, and they cursed in their hearts. These bastards are really thinking about how to maximize their own interests.

Well, it seems that overseas funds are all taken into account. In order to avoid being severely cut by the US government when overseas funds return, almost all multinational companies will not choose to return overseas funds, but stay overseas and wait for them to be used. To make acquisitions or mergers and acquisitions, to avoid taxes reasonably.

"If the shareholders agree with our counterattack plan, then let's vote with a show of hands now!" Paul Jacob said with a serious face and gloomy eyes. He wanted to make a counterattack plan earlier to deal with the barbarians outside the door smashing the door!

"I agree!"

"I have no opinion!"

"You can try it!"

. . . . . .