bestfiction Chapter 368 Star Technology's All-Out Attack
Chapter 368 Star Technology's All-Out Attack
Ling Yun sat at his desk, several news pages open on his computer screen, which he scrolled through one by one. The first headline was "Full Brawl Erupts at Star Technology Board Meeting: Goldman Sachs and Dell Representatives Fight." He glanced at the headline for two seconds, then continued reading.
The article states: On June 14th, the board meeting of StarCraft Technology was once again thrown into chaos. According to sources present, representatives from Goldman Sachs and Dell got into a heated argument during discussions about the CEO candidate, which escalated into a physical altercation. The meeting was forced to adjourn, and police intervened to investigate. StarCraft Technology's stock price plummeted 28% that day, closing at $15.20, a new low since its IPO.
He continued scrolling down, and the second news item was headlined "StarCraft Technology CEO Eric Resigns Suddenly, Citing 'Personal Health Reasons'." He clicked on it, and the text was brief: StarCraft Technology announced today that CEO Eric has resigned due to personal health reasons. In his statement, Eric said he will accompany his wife to China for traditional Chinese medicine treatment. The board of directors has accepted his resignation, and a new CEO has not yet been selected.
He continued scrolling down, and the third news item was titled "Star Technology in Power Vacuum, Analysts Say 'Potential Delisting'." He didn't click on it, just glanced at it, and then closed it.
Ling Yun leaned back in his chair, looking at the ceiling, in a good mood. He stood up, walked to the window, and opened the blinds. It was already June in Jinan; the willow leaves were a deep, almost black, green, swaying gently in the breeze.
There was a knock on the door, and Fiona pushed it open, holding a folder in her hand. "Mr. Ling, this contains basic information on technical talents that Silicon Valley is interested in hiring to work at Xinghuo. Please take a look."
"Don't you need to adjust to the time difference? You just arrived in Jinan yesterday, and you're already at work today?" Ling Yun said.
Fiona walked over and placed the folder on the table. She stood there and said, "President Ling, I have something to tell you about the news from Xingchen. I don't know if you've seen it, but it's on the news."
Ling Yun nodded and said, "I saw it."
She began, "Goldman Sachs and Dell have already fought three times. The first time was last month, they were arguing in a conference room, but there was no physical violence. This time it really happened. Dell's representative had his nose bleeding from the blow. Goldman Sachs' representative's suit was torn."
Ling Yun asked her, "Was it that heated? They even started a fight at the board meeting. Who struck first?"
Fiona said, "I don't know, but I heard the two of them had a history. The Dell representative came from a sales background and had a bad temper. The Goldman Sachs representative came from an investment banking background, was smooth-talking, and spoke harshly and unforgivingly. The two of them started arguing at the beginning of the meeting, argued for more than an hour, and then they got physical."
Ling Yun walked back to his desk, sat down, and asked, "What's the current stock price of Xingchen?"
Fiona opened the folder, glanced at it, and said, "$15.2, it closed at $15.2. I wonder how much Goldman Sachs and Morgan Stanley lost? They lost money shorting, and they lost money when the stock price fell."
Ling Yun chuckled and said, "Goldman Sachs and Morgan Stanley lost about four billion dollars combined when they shorted the stock. Now that they hold shares and the stock price has fallen, they're estimated to have another ten billion dollars in unrealized losses. I just don't know how much of their losses can be recovered from the agreement they reached with Microsoft. Dell and HP aren't doing much better. They spent a lot of money buying shares on the secondary market to fight for control. Now that the stock price has fallen like this, they're probably losing a lot too."
Ling Yun turned on his computer and refreshed the news page. A new message popped up with the headline, "Eric Resigns as CEO of Xingchen Technology, Takes Wife to China for Medical Treatment." He clicked on it and saw a photo of Eric at the airport. He was wearing a gray jacket, carrying a suitcase, and standing next to him was a woman, presumably his wife. The two were walking towards the security checkpoint with their backs to the camera.
Fiona, standing nearby, spoke up: "Before Eric left, he transferred his shares to the employee stock ownership platform. He held about 0.5% of the shares. There's another issue. The two sides can't reach an agreement on the new CEO. Goldman Sachs has nominated someone, and Dell has nominated someone too. Neither is willing to budge. The board has held three meetings, and all three have yielded no results. Currently, the company has no CEO, and day-to-day operations are handled by the department directors themselves. Analysts say that if this drags on any longer, the company might be delisted."
Ling Yun nodded and said, "I understand."
Fiona looked at him, waited about three seconds, and then asked, "President Ling, did you already foresee that something would happen at the board meeting, that they would fight amongst themselves?"
After a few seconds, Ling Yun turned his head and said, "Their positions are not aligned. When I was around, they joined forces to fight against me, thinking that if they drove me away, they could make even more money. Goldman Sachs and Morgan Stanley wanted to cooperate with Microsoft to continue making money from monopolizing the market, while Dell and HP wanted to compete with Microsoft by controlling StarCraft, hoping to keep their own destiny in their own hands. They are destined to part ways and fight amongst themselves."
Fiona paused for a moment, then asked, "They're definitely going to fight? Who will win?"
Ling Yun said, "Goldman Sachs plus Morgan Stanley, Dell plus HP, the two sides are not much different, and neither can gain a controlling stake. In Abu Dhabi and France, neither side takes sides, so the board of directors will always be tied. There are no winners, only losers."
Fiona didn't speak; her expression was complex, as if she understood something, yet also as if she didn't fully understand.
He continued, "If they want to fight, let them fight. In the end, no one will win. A board that can't win will only be left with a standoff. How can a company that's constantly fighting develop? The stock price will just keep falling."
Fiona asked him, "What about Eric? You knew about his resignation too?"
Ling Yun shook his head and said, "I don't know about Eric's matter. But he was right to leave. That location is like a volcano crater; no one can sit still there."
Fiona stood there for several seconds before speaking, "President Ling, did you consider these things when you left?"
Ling Yun didn't reply, and refreshed the news page again. A new message popped up with the headline "Star Technology in 'CEO-less' State, Analysts Warn of Possible Delisting." He looked at the headline for two seconds, then closed it.
He leaned back in his chair, a slight smile playing on his lips, and said, "It won't be quiet for at least six months; that'll give them plenty of time to fight."
Fiona stood beside him, watching him. She opened her mouth as if to say something, but no words came out.
Ling Yun sat alone in his office. He picked up his phone, found Eric's number, and sent a text message: "Have you arrived?" A few minutes later, his phone vibrated, and a message popped up on the screen: "At the hotel. Your wife is doing well. Thank you."
He stared at the words for a few seconds, then locked the screen. He put his phone on the table, stood up, and walked to the window. He opened the blinds again. Sunlight streamed in, making him squint.
He stood by the window, looking outside. About ten minutes later, there was another knock on the door.
Fiona pushed open the door and came in, holding a freshly brewed cup of tea, still steaming. She placed the teacup on the table, stood by the table, and glanced at Ling Yun standing by the window.
"Ms. Ling, there's one more thing," she said.
Ling Yun turned around and asked, "What is it?"
Fiona said, "Before I returned to Jinan, Zhao Hu asked me to pass on a message to you."
Ling Yun looked at her without saying a word.
Fiona said, "He said everything went smoothly, and he didn't show up directly."
Ling Yun nodded. He walked back to the table, picked up the cup of fresh tea, and took a sip.