If you cheat, money will follow

The next morning, Zeng Xi arranged for Wolfgang and Wendelin to be taken to the Fortune Plaza Building.

The relocation of Leda Investment Company was carried out quickly and orderly. There were no people at the old site of Fortune Plaza Building and it was very quiet.

Being quiet is very suitable for fighting... and negotiating.

Wolfgang and Wendelin entered the conference room. After sitting down, Zhao Zhiwei sent a draft framework agreement to the two.

The agreement lists the preconditions for completing the transaction.

Zeng Xi said: "Welcome Mr. Wolfgang and Mr. Wendelin to our company. We are very honored to be able to help you, and we are willing to provide you with the help we can."

"Before the formal negotiations, I would like to talk about a little digression. That is that our company does not like to beat around the bush in business negotiations, and prefers frank, direct, effective and straight-to-the-point consultation methods."

"We like to directly state the conditions we are willing to accept. As long as the conditions we propose are acceptable, then we will continue to negotiate in the future. If it is not acceptable, I'm sorry, but our company can't help."

Wolfgang said: "Okay, but we need to see the content of the framework agreement first."

Zeng Xi said: "Of course, do you need to go back to the hotel to see it first?"

Wolfgang said: "No need, the content is not long."

A framework agreement is a contract established by both parties reaching an agreement on the subject matter of the transaction and defining the main content. It has legal effect but is not equivalent to a formal contract.

The framework agreement is rough but clear in direction, and the formal contract is further refined and operable based on the framework agreement.

Therefore, the framework agreement is not long, just a few pages.

However, in these few pages, most of the conditions and contents specified are what Porsche needs to do, and the responsibilities of Leda Investment Company are very few.

Party A: Leda Investment Company

Party B: Porsche Car Company

Condition [-]: Party A accepts a variety of transaction methods, but does not accept transactions entirely in cash;

Condition [-]: Accept the shares of Party B or its subsequent sub-brands for trading, and the difference will be replaced by technology.

Technologies include but are not limited to "Engine engine system, turbine engine technology, TiptronicS gear system, PDK dual-clutch transmission, Brakes braking system, traction control system PTM, stability management system PSM, active suspension management system (PASM), Safty safety structure , fuel injection technology (DFI)...etc.

Condition [-]: If Party A plans to enter the field of vehicle manufacturing, Party B must sell at least two automated production lines for vehicle manufacturing at cost, and arrange for technicians and engineers to participate in technology research and development. The R&D results will be shared in proportion to the investment. Party A shall pay corresponding equipment and technology research and development expenses.

Condition [-]: If Party B chooses to trade with a sub-brand, the value of the sub-brand traded is greater than the value of the shares held by Party A, and Party A will make up the difference in cash.

Condition [-]: Party B shall take the initiative to coordinate and resolve a series of issues arising or derived from the transaction process, including market, public opinion, etc. If Party B fails to cooperate, it will be deemed a breach of contract and shall bear corresponding liability for compensation...

Condition [-]:……

Condition [-]:…

Condition 10: The content of the above agreement and the subsequent formal agreement shall not be publicly released without the mutual consent of both parties, and are limited to [-] years. Official review excluded.

After reading it, Wendelin said: "Mr. Zeng, are the conditions stipulated in this framework agreement too harsh?"

Zeng Xi shook his head and said: "Are they harsh? I don't think so. I think these conditions are roughly equivalent to the value of the proportion of shares we hold. Of course, the specifics require further negotiation."

Wendelin said: "The technologies listed by your company are valuable and cannot be used as add-ons to the transaction."

Zeng Xi said: "Mr. Wendelin, I think you know the current situation of Porsche cars better than we do."

"You used your Porsche shares as collateral to borrow bank loans for the acquisition, and the amount of interest generated every day was very huge."

"The current economic situation has continued to deteriorate, and your sales revenue in the first half of the year has dropped significantly."

"And the profits generated by your sales are not enough to eliminate this huge debt. It has even become a heavy burden as the economic situation worsens. Whether you can pay the interest by then is unknown..."

"Although you now have control of most of Volkswagen's shares and promissory notes, as long as you do not achieve absolute control, you will not be able to reduce debt through Volkswagen's huge assets."

"Of course, you will definitely say that you can give up the acquisition. There is no loss for us if you give up the acquisition. We still hold 10% of Volkswagen shares and enjoy the corresponding right to speak."

"And if you give up the acquisition, the hedge funds will be very happy, and they will earn more high price differences;"

"The 15 banking and financial institutions may also be happy, because they can openly receive Porsche cars and possibly resell them based on the agreement signed by both of you;"

"It's also possible that Volkswagen will be happy too and they can do a reverse takeover and you'll have no power to resist."

"In short, no matter what the possibility is, the Porsche family will be the biggest loser. Mr. Wolfgang, you may lose control of Porsche cars. Even the valuable assets passed down by the family will be lost. You will become one of many long-standing families." Just a joke.”

"No, these are just your guesses," Wendelin said.

Zeng Xi disagreed and said, "Maybe, you can give it a try."

Wendelin wanted to argue, but it was pointless.

Wolfgang waved his hand and said: "Wendelin, arguing will not solve the problem."

He then said to Zeng Xi: "Mr. Zeng, you have analyzed the severe situation we are facing very accurately and grasped it well..."

Zeng Xi smiled and said: "I'm just making a bold guess, it may not happen, right?"

Wolfgang said: "Whether it happens or not, and the series of consequences, we need to consider..."

"Assuming that we are willing to accept the above conditions proposed by you and conduct further negotiations, what kind of help will your Leda Investment Company provide in the face of various possible, unknown, and uncontrollable situations? Do we complete the acquisition and get through this?”

"As you just said, Mr. Zeng, our debt pressure is indeed very high. The current economic situation and sales situation cannot support us to eliminate debt for the time being."

"Even if we fully control Volkswagen, given our country's national conditions, Volkswagen can still file lawsuits with regulatory authorities and courts on the grounds of debt. Of course, we will try our best to prevent this possibility from happening so that it cannot change the outcome."

"But long-term regulatory intervention and judicial review will affect the final implementation of our acquisition. What will happen during this long review time? What will it lead to? How will Leda Investment Company help us? This is what I am most concerned about."

After listening to Wolfgang's words, Zeng Xi had an idea in his mind:

"Mr. Wolfgang, as rumored, you are very high-level and prophetic."

Wolfgang said: "Thank you."

Zeng Xi said: "If your company accepts the conditions we have proposed and further optimizes the contract details, then once the deal is concluded, we, Leda Investment Company, can do a lot more than you think..."