Reinventing the Millennium

“Mainland’s richest man is under suspicion of hostile takeover again!”

"Morningstar Semiconductor has internal conflicts, and Mr. Fang's increase in stock holdings is under investigation!"

“Fang Zhuomeng returns to 2002, Morningstar may become Sina’s No. 2!”

"Fang and Liang are at odds over Morningstar's equity!"

On December 20, Fang Zhuo sat in the CEO office of Hang Lung 23 and frowned at some relevant media reports.

The current progress has been unexpected. Previously, out of hope and politeness, he made a call to Liang Gongwei, and then the matter was ignored.

Hey, it’s better not to fight.

However, even if there is no fight, Mr. Liang's reaction will not be much worse if he discloses the holding information in accordance with regulations.

Fang Zhuo felt that the tone of communication on the phone was definitely kind enough. He really didn't expect or underestimated Mr. Liang's inner determination, or perhaps Mr. Liang had already had some judgment about himself.

His eyes fell on the media reports on the screen. It was a review of Sina's acquisition and speculation on the increase in Morningstar's holdings. It was eloquent and spectacular.

Fang Zhuo sighed helplessly, that was all in the past in 2002.

A shot fired seven years ago, the sound of bullets piercing the air still echoes seven years later.

From the bottom of his heart, he didn't want this matter to create a big public disturbance. It was related to the development of semiconductors in the territory and involved Baodao enterprises. It was better to keep a low profile.

However, Mr. Liang directly used the unspoken rules of the Hong Kong stock market to make such a move. It was obvious that he wanted to buy time to appease the internal affairs, and then it would be very easy to continue the negotiation or to be tough to the end.

I had no choice but to sit back and watch the "poison pill plan" emerge, and could only fight back through the board of directors' defense.

This attack and defense is a complete rift, and it is destined to make this matter more intense.

Previously, the company team gave two plans, either to directly privatize the company through a comprehensive acquisition of 90%, or to increase the holding to 30% and seek control through a mandatory tender offer.

Now, the hope of the former has been shattered. In addition to whether it can receive enough public shares, what is equally important in this plan is the shares in Mr. Liang's hands. This was originally planned to gather Morningstar's internal lobbying, and under the situation, a two-pronged approach was adopted. Convincing the other party is completely unworkable now.

As for the second option, which is currently temporarily suspended due to investigation... it can still serve as a guarantee.

Fang Zhuo had no insider trading at all this time. The so-called investigation will not stop him for a long time, and the increase in stock holdings and forced tender offer will turn into a price war.

When it comes to money, things get rough and simple.

No matter how much public opinion stirs up a storm, as long as the "poison pill plan" is stopped decisively, there will be room for the second plan to continue.

At ten o'clock in the morning, Fang Zhuo, who had simply handled the company's affairs, welcomed Xiangjiang's investigation team for matters related to the previous increase in holdings.

Generally speaking, this kind of grand investigation is announced and implemented after obtaining certain evidence.

However, this time, I am afraid that only "stately" is left.

The investigation team seemed to ask more questions than investigate, mainly describing the intention of the leader of Yike to increase his holdings, whether he knew about Morningstar's recent good news, related transactions between its subsidiaries and Morningstar, etc.

Fang Zhuo talked about his increase in holdings in a calm mood and did not get angry about this sudden investigation.

He is not that domineering. If he wants Morning Star, he can't allow the other party to counterattack.

"When will this investigation end?" Fang Zhuo asked when his friends in Xiangjiang stood up to leave.

Xu Zhongxian, executive director of the Municipal Supervision Department of Xiangjiang, is the leader of this investigation team. He said politely: "Mr. Fang, we understand your mood and will verify the situation as soon as possible."

Fang Zhuo asked again: "Can the results be announced before the Spring Festival?"

Xu Zhongxian thought for a moment and replied: "I can't be sure now. I can only say that our Municipal Supervision Department will try our best to bring this matter to an end."

Xiangjiang's Market Supervision Department is an administrative department that jointly supervises insider trading with the Law Enforcement Department, the Insider Trading Tribunal and other departments.

Fang Zhuo said "hmm" and still said: "As I just said, there is no problem with my increase in holdings this time. I have no resistance and even welcome you to investigate. I hope it will be before the Spring Festival at the latest." to be able to bring an investigation like this to an end.”

Xu Zhongxian thought that this time was okay, but he did not make a promise. He just smiled and said: "Why did Mr. Fang set the time to the Spring Festival? I will communicate with everyone after I go back."

Fang Zhuo nodded slightly and gave his reason: "Before the Spring Festival, I want Morning Star."

The smile on Xu Zhongxian's face froze, feeling the strong determination from Mr. Fang.

He said again: "I understand, Mr. Fang, this matter will definitely be handled fairly."

Fang Zhuo stretched out his hand and shook Director Xu's hand before sending these Xiangjiang visitors out.

Xiangjiang's response to this investigation was very fast. I am afraid that there are some factors behind it. Mr. Liang was able to bring Morningstar from scratch to a tens of billions of listings. His determination, ability and means are all indispensable.

After the formal guests left, Fang Zhuo returned to the president's office to listen to the latest analysis from the company's acquisition team.

Everyone was surprised by Mr. Liang’s quick and resolute counterattack. Now, in addition to continuing to communicate with part of Morningstar’s management, one thing that is more noteworthy is that Mr. Liang may use major company issues to temporarily suspend trading.

Insider trading investigation eases offences.

A temporary suspension of trading in the company's shares can also mitigate the attack for a period of time.

Plus there is the upcoming annual report...this is the customary inactive time.

Fang Zhuo's intentions have been made clear, and there are still many stumbling blocks that the opponent can set up.

Today, unlike in the past, it is not easy to hide the presence of giants.

However, today is different from the past, and giants do not have to hide.

Whether it is an investigation, a suspension of trading, or an annual report, every obstacle will be removed. They are just small twists and turns leading to the ultimate goal. The most important thing is the ownership of Morning Star.

Fang Zhuo's original planned price for the mandatory offer was to fluctuate by 15%. Now, respecting the advice of professionals, the price has fluctuated to 30%.

He himself is also ready to fly to Xiangjiang before the Spring Festival, intending to end the stalemate as soon as possible and complete the final control of Morning Star.

Seven years ago, Fang Zhuo thought carefully about how to crack Sina's poison pill plan. Today, he no longer has to think like this.

The best way to defeat a poison pill is not to dismantle it, but to prevent it from happening in the first place.

This offense has announced the ultimate winner as soon as the horn has been blown.

On December 21, Morningstar held its second board meeting. Chairman Liang Gongwei once again proposed the "Shareholder Rights Plan", but this time it was still rejected.

The difference from last time was that last time there were 4 abstentions, this time there were 2 abstentions and 2 votes against.

When acquisitions come, poisonous pills are hard to throw away.

I won’t stay up late today. I’ll make up for the word count tomorrow.

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