Chapter 384: Opinions Are Aligned
Li Tang had initially planned to return directly to Yanjing.
He wanted to celebrate a belated Spring Festival at his home in Yanjing while there was still a hint of the festive atmosphere in the air. Because he hadn't returned to his hometown for the holidays, his parents had specifically traveled to Yanjing, understanding his busy schedule, and were waiting for his return.
However, after Alice went to Hong Kong and met with the heads of Jiangda Securities, Chinalco, and CITIC Pacific, it became clear that her words alone didn't carry enough weight. The representatives of all three companies requested a direct face-to-face meeting with Li Tang himself.
As a result, Li Tang first flew to Hong Kong.
Li Feiqun from Jiangda Securities met with Li Tang first and immediately made her position clear: "Jiangda Securities has already committed to Mr. Li earlier. Regarding financing, we are ready at any time! For the one billion USD you require, we can release it according to your needs whenever you say."
"Thank you for your support," Li Tang glanced back at Alice, relieved that things were proceeding smoothly.
Li Feiqun wore a professional smile on her face.
This single deal would generate around 200 million USD in revenue for Jiangda Securities. It was a significant project, large enough to dramatically enhance the company's financial figures. Naturally, she treated Li Tang, her major client, with exceptional politeness and enthusiasm.
However, as a responsible professional, she still had to convey some crucial points.
"Substantially increasing your holdings in Alcan shares at this stage will be far more difficult and costly than it was two months ago."
She glanced meaningfully at Li Tang and Alice, expressing her concerns while reminding Li Tang: "Recently, the media has widely reported that Alcoa, after negotiating unsuccessfully with Alcan's management for nearly two years, is planning a hostile takeover. Our internal sources have also confirmed this news."
"Mmm," Li Tang nodded slightly.
Though this information wasn't officially announced yet, the news of Alcoa's planned hostile takeover of Alcan had already spread as more than mere speculation. Judging by Li Feiqun's firm tone, Jiangda Securities had clearly obtained reliable and high-level information.
"Alcoa is currently negotiating with a Wall Street investment bank to secure loans exceeding twenty billion USD. With Alcoa's capabilities, obtaining this financing won't be difficult."
Li Feiqun said this not because she was optimistic about Alcoa's acquisition succeeding, but rather out of concern. "Considering Alcoa's history, this hostile takeover will be particularly aggressive. However, their past offers have consistently been low. Therefore, our internal intelligence department, formed specifically for your project, gathered various sources and concluded that Alcoa has less than a 50% chance of successfully completing this acquisition."
"How does this affect us?" Li Tang asked.
"Due to Alcan's potential takeover, and recent aggressive moves by Alcoa, the market is frantically buying Alcan stock, driving its price significantly higher. When you started heavily acquiring Alcan stock, it was priced between $55 and $60. Now, it's reached $71 per share."
Li Feiqun looked at Li Tang deeply: "Our financial analysts believe Alcan, given its continued losses, is seriously overvalued at this price despite its large market share. We estimate Alcan's true market value to be around $50 per share."
"Mmm," Li Tang nodded casually.
"If Alcoa's bid fails and no other company launches a takeover attempt, Alcan's stock price could rapidly collapse due to poor financials and market neglect."
Li Feiqun spoke bluntly, afraid Li Tang wouldn't take the warning seriously. She spoke earnestly: "Under those circumstances, liquidating your holdings would be extremely difficult. You've already achieved a profit exceeding 20% within just two to three months. Considering you've leveraged this investment, your actual return has surpassed 40%, equating to roughly 400 million USD in pre-tax profit. Also, if you repay your existing loan from us early, the interest will be minimal."
Four hundred million USD.
In just two or three months.
Alice already knew these figures from internal accounting. However, hearing this number from someone else was entirely different. Once again, she glanced at Li Tang with astonishment and admiration, feeling more and more captivated by him.
Had there not been others present, she would have kissed his cheek right there. She loved his remarkable abilities and charisma!
Initially, she believed Li Tang had extraordinary capabilities only in geological exploration, as he consistently discovered massive mineral deposits. Later, she realized his insight into mining rights development and exceptional judgment in talent management was equally impressive.
For example, Fred, one of Australia's "three greatest con artists," had a questionable reputation in the capital markets. However, Li Tang went to great lengths to recruit him, offering substantial equity options to entice him into building Winning Mining into an iron ore empire. Now, it was evident that Winning Mining was rapidly growing due to Fred's efforts, and its future was limitless.
Only recently did Alice fully appreciate that her boss also possessed astonishing courage and impeccable timing in financial investments.
Before Li Tang's bold move, Alcan's stock had been stagnant. The market was divided: some were optimistic about Alcan's potential for a premium buyout due to its massive market share, while others were pessimistic because of its consistent losses. Mitsui & Co., representing the pessimistic side, had hurriedly sold their shares to cut losses.
Amidst this uncertainty, Li Tang fearlessly jumped into the fray, aggressively accumulating Alcan stock. Currently, his holdings exceeded 9%, making him one of Alcan's top three shareholders, as Alcan's shares were widely dispersed worldwide.
This investment caused an enormous stir in financial circles.
Some praised Li Tang's courage, while others mocked him as reckless, claiming he didn't understand market dynamics. However, Alice knew better than anyone else exactly who Li Tang was.
He was a truly remarkable man!
"We've already made considerable profits," Alice agreed internally, feeling the investment had paid off handsomely. Knowing when to retreat amidst market euphoria was the hallmark of exceptional investment insight.
"If you significantly increase your holdings at this high price of $70, a minor setback in stock price could quickly erase all your previous gains," Li Feiqun continued earnestly, concerned for Li Tang.
Jiangda Securities would certainly profit regardless. But due to professionalism and genuine goodwill, she hoped Li Tang could also benefit significantly from this major financial transaction. Long-term relationships and future cooperation were more valuable than immediate profits.
It was like raising chickens: killing a hen might provide one satisfying meal, but allowing it to lay eggs provided ongoing, sustainable benefits.
Li Tang didn't entirely dismiss Li Feiqun's analysis, but he felt the international mining giants' desire to acquire a colossal enterprise like Alcan was being severely underestimated.
Which executive of those mining giants didn't dream of accomplishing a spectacular merger, making their mark in business history?
As long as the global mining sector continued its rapid growth trend seen over recent years, any acquisition premium could eventually be justified by subsequent high returns from booming economic conditions.
"You're right," he acknowledged calmly.
"People often remember only the successful mergers and acquisitions that cause sensations, and history likewise tends to record only these significant triumphs. However, in the business world, the number of failures in mergers and acquisitions far surpasses that of successes."
Li Feiqun clearly sensed that Li Tang wasn't taking her words seriously enough, so she further elaborated her point, "Putting all your chips on an event with low probability might yield high returns, but that's the psychology of a gambler! In investment—especially involving such substantial sums—you absolutely cannot rely on luck."
Her remarks were already quite severe, essentially criticizing Li Tang. It could even be interpreted as her thinking that Li Tang was gambling and lacked a genuine understanding of investing.
"I understand," Li Tang nodded, his expression unchanged.
He had a foresight others did not, so he wasn't worried about losing money on this investment. Originally, his idea was just to make a quick profit without drawing excessive attention or provoking unnecessary hostility.
However, after experiencing Rio Tinto's targeted suppression regarding the Malhe River iron ore project, he changed his mind. At first, he didn't take their opposition seriously, but Rio Tinto kept intensifying their pressure and going too far. Since the opportunity now presented itself, he would use it to teach Rio Tinto a lesson.
Increasing his holdings in Alcan was no longer purely for profit.
"My decision remains unchanged: we will acquire Alcan shares at any cost!"
After he finished speaking, without waiting for Li Feiqun's further persuasion, Li Tang turned to Alice and asked, "Have Lü Caiqing and Rong Yijian arrived yet?"
He had deliberately scheduled the meeting with Lü and Rong half an hour after Li Feiqun's.
"They should be here soon," Alice glanced at her watch; there were still about ten minutes left before the agreed time.
Just as she finished speaking, Lü Caiqing and Rong Yijian walked into the room one after another.
Everyone already knew the main topic for today's meeting: borrowing another billion USD to further invest in Alcan shares.
"According to your plan, we should further increase our investment and even leverage more," Rong Yijian clearly had deep reservations about Li Tang's decision. "As you stated, we need at least another billion USD loan, possibly even more. This would reduce our own equity portion of the total investment to around 30% or even lower."
"That's right," Li Tang nodded firmly.
"Currently, Alcan's stock price is already inflated and will inevitably fall. If the price drops by a certain percentage, Jiangda Securities has the right to forcibly liquidate our positions!"
Previously, their investment partnership had agreed on a stop-loss point. Jiangda Securities itself also had a mandatory stop-loss clause.
Rong Yijian clearly disapproved of Li Tang's aggressive strategy, "If we face forced liquidation, we risk losing our entire investment!"
"I understand," Li Tang noted Rong Yijian's attitude and turned to Lü Caiqing. "Mr. Lü, what's your opinion?"
Lü Caiqing's fair, lean face showed a hint of concern, but he didn't express it openly. Instead, he asked Li Tang in return, "What's your view?"
"I'm committed to executing my investment strategy without hesitation!" Li Tang replied without any doubt.
"Before I came here, I received instructions from President Lai," Lü Caiqing said.
"What instructions?"
"To fully support your decisions!" Lü Caiqing smiled openly. "I will firmly carry out President Lai's directive."
"Great," Li Tang returned the smile and then addressed Rong Yijian again. "Chairman Rong, if you wish to withdraw, we can buy out your shares at the current market price proportionally."
"I never said I wanted out," Rong Yijian wasn't embarrassed in the slightest. "We only contributed one hundred million USD; we can afford to lose it."
Just moments earlier, he had criticized Li Tang's risky approach, yet now he refused to withdraw.
However, there wasn't much to argue about. CITIC Pacific, led by Rong Yijian, was already planning to invest over four billion USD into the Sino Iron Ore project in Australia. In fact, when the Sino Iron project ultimately failed, Rong Yijian, as the company chairman, would inevitably bear responsibility and resign.
It would later be revealed by the media that the real reason for his resignation was not solely due to the hundreds of millions lost in the Sino Iron Ore project, but also because he had gambled billions in corporate funds on foreign exchange, incurring massive losses.
In this context, a mere one hundred million USD was indeed insignificant to him.
"Very well. It seems we all share the same view!" Li Tang stood up, smiling at Alice, "Look, everyone is optimistic about this investment!"
Alice wrinkled her nose slightly, silently acknowledging that only Li Tang's presence could have unified these opinions.
Previously, when Alice communicated the plan to increase investment by another billion USD to Rong and Lü, she was bombarded with questions, criticisms, and doubts from both of them and their teams. Yet now that Li Tang was here, everyone behaved politely.
Li Tang instructed Alice to remain in Hong Kong to handle the following Alcan investment procedures while he returned to Yanjing.
His parents were staying at an apartment behind Yunding Tower. Previously, Li Tang had also bought a villa farther away from the company, near Alice's residence. It was spacious, quiet, and beautifully furnished. However, due to his constant traveling and the convenience of staying close to the office, he rarely stayed there.
"You're so busy, even during the New Year!" Tang Chuqiu warmly greeted Li Tang as he entered, quickly instructing Li Zaiqiang to help their son with his luggage.
"Mr. Li, I'll leave now," Gao Jingjing brought Li Tang's suitcase to the doorway and waved goodbye.
"You should rest early as well," Li Tang nodded.
"Is this young lady your colleague? Come in and have dinner with us; it's almost ready!" Tang Chuqiu saw Li Tang's assistant for the first time and invited her warmly, as was her habit.
"No, thank you, Auntie. Please enjoy your meal," Gao Jingjing politely declined with a smile.
"Your colleague has come all the way to the doorstep, and you didn't even invite her inside for dinner? How rude!" Tang Chuqiu complained.
Li Tang shrugged it off, knowing that Gao Jingjing might have felt uncomfortable if she had stayed for dinner.
Upon entering the house, Li Tang noticed Li Xinqi sitting in the living room, watching television while casually munching sunflower seeds.
He paused briefly, smiling awkwardly, "Oh, you're here too."
"Xinqi has been here with us throughout the holidays," Tang Chuqiu happily explained, genuinely fond of Li Xinqi. "She brought us food and took us shopping; she's been great company!"
Li Xinqi smiled warmly, stood up gracefully, took Li Tang's coat, and hung it on the nearby rack.
She always appeared composed and thoughtful.
"You look troubled and tired. Is work going badly?"
"A little bit, just encountered some problems," Li Tang gratefully took the warm water she handed him and drank it quickly.
"It's a bit hot—" Li Xinqi's warning came too late.
Indeed, Li Tang realized too late that the water was hot but pretended otherwise, "It's fine, just warm enough."
Li Xinqi asked cautiously, "I heard from my father earlier that you encountered issues with the iron ore project."
"Yeah, a few problems came up, but they're mostly resolved now." Li Tang slumped onto the sofa, took a crisp bite of an apple, and sighed regretfully after swallowing some cola. "It's just a pity it interfered with our New Year celebrations."
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