SFS Chapter 164 The Ending of Bear Stearns
Chapter 164 The Ending of Bear Stearns
Chapter 164 The Ending of Bear Stearns
In the morning, when Paris woke up, she was alone in bed, as if the absurdity of last night was just a dream.
"What are you thinking? Why don't you get up yet, little lazy pig."
At this time, William Chen had finished exercising and was about to take a shower. Seeing Paris with her eyes open, lying in a daze on the bed, she couldn't help asking.
"I'm thinking about how this room should be decorated. This bed sheet is not warm at all. I want to buy one..."
"Pink?" Chen William followed her words and asked, after all, he knew that the bed sheets in Paris's suite at the Waldorf Astoria Hotel were pink.
"You still know me, William." Paris said with a smile.
"Well, my dear, can we discuss it, I will buy you another house, you can decorate it as you like, it can be all pink, here, can it be like this?"
William Chen was speechless.
"Really? William?" Paris's eyes lit up, as if she had imagined that scene, but she turned back and said, "Forget it, I'm still not used to living in my own house, it's so convenient to live in a hotel, no matter Wherever you go, just go directly to our hotel to stay."
Uh, you still have a point, but only your sisters can do it like this, others can't learn it.
Now Paris Hilton has successfully launched branded perfumes, and its perfume workshops have also started operations smoothly. Next, Paris Hilton's plan is to open brand stores in every city, and prepare to gradually expand to the previously cooperated brands. Take back the authorization of other fields and slowly build up your own production line.
Now the timing is more appropriate. After the subprime mortgage crisis, rents have fallen. Compared with before, the investment in brand stores can save at least one-third.
While having breakfast, she told Chen William about her plan with great interest, and Nikki also made some supplements from time to time, because they told Chen William that Nikki also merged her brand into Paris Hilton company, they are going to change the name of the company to Hilton Sisters.
"Isn't William also a shareholder? Shouldn't it be called the Hilton Sisters and William Chen company?" Jessica said with a smile.
Uh, why does it sound like a threesome?Jessica, are you sure this name is pure?
However, seeing that the two sisters were a little moved by the name, William Chen had forgotten it. Europe and the United States seem to like to name their companies in this way, such as the luxury giant - the French Moët Hennessy-Louis Vuitton Group, referred to as LVMH, if it is named like this, wouldn't the Paris company be referred to as HSWC?
This is really terrible...
In the end, William Chen strongly objected, and finally they agreed to give up the name, but changed it to Hilton-Chen Fashion Company.Well, HC is just HC, it's stronger than that anyway.
It's just that this company is still small at present. Do you want to acquire another luxury brand?Thinking that Bernard Arnault later became the richest man in Europe with LVMH, and was the third rich man with a personal net worth exceeding [-] billion U.S. dollars after Bill Gates and Bezos. It seems that the luxury industry is still Very funny.
Thinking of this, William Chen silently wrote down this matter, and asked back, which luxury brand is easier to buy now, after all, the subprime mortgage crisis is not only affecting the United States, Europe and Asia are also affected by this, and the stock market has also plummeted, so it is more convenient to buy the bottom of.
However, Chen William is also happy to see the stock market plummet in Europe and Asia.The reason is that there were still about 170 billion U.S. dollars in his account, but Goldman Sachs contacted him and invited him to participate in shorting overseas markets, because they can also see that they were affected by the subprime mortgage crisis in the United States. As a result, other financial markets in the world will also plummet along with it.
It is also possible that this economic crisis really made these big Wall Street investment banks miserable. Although Goldman Sachs and Morgan Stanley escaped this catastrophe, in this crisis, not only did they not generate too much loss, they even made money. Quite a lot.
But for them, they should have earned more, but now the profit is not as good as expected, and it is considered a loss.But in the current state of the United States, they apparently cry poorly to the Ministry of Finance and the Federal Reserve and ask for financial assistance, so they must not be too heavy on their own financial markets.
then what should we do?Go overseas, countries like Japan and South Korea in Europe and Asia, when you get there, you can let go of your hands and feet, and even if you make money by shorting them, the other party's officials will not be able to do anything to them.
Of course, there are priorities. Europe can restrain itself a little bit, and Japan and South Korea can let their hands and feet go.After all, although there are also soldiers from the United States, Europe is at least the younger brother, Japan and South Korea?They understand everything, anyway, they are not from a normal country.
But there are always risks in this kind of thing, so let’s stick together. The money lost in the country must be made up elsewhere.Therefore, led by Goldman Sachs and Morgan Stanley, they gathered a group of funds and wantonly entered the financial markets of these countries for short selling. Chen William also took out 100 billion US dollars to participate in it.
Anyway, if it is him alone, he is still powerless, and there is no such suitable manpower for the time being. Now, making money with these investment banks, on the one hand, can deepen the ally relationship with Goldman Sachs, on the other hand, these funds are also on the shelf. , By the way, earn some pocket money.
Previously, the Nikkei 225 stock index had reached a seven-year high of 7 points. According to the judgment of Goldman Sachs analysts, the rise of the Nikkei stock index was close to stagnation, so they invested a lot of money in shorting the Nikkei index.
Sure enough, as the subprime mortgage crisis spread to the Asian financial markets, the Nikkei Index took a dive, plummeting to 15000 points in a short period of time, and it is still falling.
The same is true of European stock markets. The latest wave of decline has made American funds, including Goldman Sachs, full of oil.
……
Once you have a start, you will gradually get used to it later.
Just like these two days, the one who stayed overnight in Paris' room was sometimes Jessica and sometimes Nikki.
When the Christmas holiday passed, a piece of news shocked the whole world——
Bear Stearns, facing a severe liquidity crisis, announced that it had reached a short-term financial term agreement with Morgan Stanley, which may end its 85-year independent operation history as an independent investment bank.
This means that Morgan Stanley intends to acquire Bear Stearns, which is in crisis, and take the fifth largest investment bank in the United States into its pocket.
The next day, on December 12, the Federal Reserve announced its support for the acquisition. In addition to lowering the discount rate to match it, it also agreed to provide $27 billion in financing for Bear Stearns' less liquid assets. , about $300 billion of which was backed by mortgage-backed securities.
In the afternoon of the same day, Morgan Stanley issued a statement saying that it had agreed to provide assistance funds to Bear Stearns for an initial period of 28 days.
Morgan Stanley will exchange 0.05473 shares of its common stock for 1 share of Bear Stearns to complete the acquisition, and the boards of directors of both companies have approved the transaction.
The acquisition offered Bear Stearns investors $2 per share, well below the company's previous share price of $30.The share price of Bear Stearns was more than US$60 half a month ago, more than US$150 more than a month ago, and even as high as US$170 at one point.
It can also be seen from these data that in this short period of time, the stock price of Bear Stearns has fallen dramatically.
Morgan Stanley said it was preparing to buy brokerage Bear Stearns for $2.36 million, an acquisition that received unprecedented support from the Federal Reserve.
As soon as this news was disclosed, Bear Stearns' stock fell crazily after the suspension ended the next day, and at one point fell to the announced purchase price of $2...
Chen William immediately notified John Paulson, and he also took this opportunity to quickly close the short position on the Bear Stearns stock.
Their short selling this time, from the price of Bear Stearns at about 170 yuan, until the stock price fell to about 50 US dollars, and today, the average closing price is only less than 10 US dollars, which can be said to be a complete victory.
The facts also proved that they made a very correct decision to close the position in time this time, because the stock of Bear Stearns was suspended again the next day.
After yesterday's stock price plunge, Morgan Stanley and Bear Stearns announced again on the same day the amendment to the merger agreement for Morgan Stanley's acquisition of Bear Stearns.
Under the revised terms, each share of Bear Stearns common stock will be exchanged for 0.21753 shares of Morgan Stanley common stock (initially 0.05473 shares), based on yesterday's closing price of Morgan Stanley common stock on the New York Stock Exchange, which means that Bear Stearns common stock The implied value is about $10 per share.
In addition, Morgan Stanley and Bear Stearns reached a share purchase agreement. According to the agreement, Morgan Stanley will acquire 9500 million shares of Bear Stearns newly issued ordinary shares at the price stipulated in the amendment to the merger agreement, accounting for 39.5 million shares of Bear Stearns after the issuance. 9500% of common stock outstanding.The purchase of 2010 million Bear Stearns shares is expected to be completed on or about January 1, 8.
It seems that some people were dissatisfied with the content of the previously announced agreement, which led to the conclusion of another revised agreement.
After all, to buy Bear Stearns at a share price of US$2, Morgan Stanley is indeed taking advantage of the fire, not to mention the help of the Federal Reserve behind it, so the situation should not be too ugly.
However, thanks to this twists and turns, William Chen's Meta Investment Company was proud to close the position at a lower price.
(End of this chapter)