Darkstone Code-Chapter 900 - 898: I Hope You Have Mr. Lynch’s Phone Number
Whether the Senator is daring or interested in finance, Lynch doesn’t care to know, nor does it matter if he knows at all.
He can’t be unaware that this Senator has been holding him at bay for so long, and the sudden change is definitely related to increased orders.
The military won a battle and earned the title of "the world’s leading naval power," and now the military’s power and influence are expanding infinitely.
Someone calculated that five years ago, the entire military’s annual budget was less than a few billion, and Congress rejected over sixty percent of the military’s budget.
The reason was to avoid sparking international confrontation, believing that enhancing the Federation Military’s strength would only unsettle international allies, hence most budget requests were rejected.
This year, just the Navy’s budget alone, after review and approval, has exceeded ten billion, indicating that the military’s "force" in every aspect is expanding rapidly.
Blocking what the military urgently wants today means the Military Intelligence Bureau will start gathering dirt on the Senator tomorrow.
Indeed, Federation laws stipulate that no type of investigation can be initiated against serving officials, and if someone is familiar with this law, they will know there’s an "area" in it.
This law only binds law enforcement agencies such as the FBI, Federation Police Station, Federal Security Committee, Department of Homeland Security, and Federal Tax Bureau.
It does not include the Military Intelligence Bureau and the internal investigation departments of the Federation Army and Federation Navy, they are outside the jurisdiction of this law.
Normally, the military doesn’t voluntarily investigate any officials, because there’s no need, it’s not worth it.
But it’s very important that they can do it if necessary, they choose not to, but it’s not that they can’t.
Once the Military Intelligence Bureau believes that the Senator poses a significant threat to national security, they can directly investigate him.
In the end, they might find it was a "false alarm," but during this process, they could unexpectedly uncover other issues, such as official crimes or abuse of power.
These two charges might be a joke in some countries like Gafura, but in the Federation, they are enough to strip a Senator of his power.
Regardless, the Senator frequently engages with the military, he’s surely aware of these threats, or he wouldn’t be so eager to curry favor—before the truth is revealed.
And this is why Lynch doesn’t offer him substantial benefits, only inside information, it’s the message he wants to convey.
"If you want benefits, take a gamble!"
As the Senator contemplated these gains and losses upon returning home, the president of Every Moment faced each agonizing second.
Time felt like a saw cutting his soul, each second a wrenching pull, his soul was on the verge of splitting.
Every Moment’s assets were severely shrinking, and more terrifyingly, some shareholders told him that someone was privately contacting them, intending to acquire shares from them.
Meanwhile, his personal advisor also informed him that there were abnormal transactions in the stock market.
A massive amount of stock was being cleanly swallowed by scattered buyers, although these people tried to make it seem like normal trading, it inherently violated financial norms.
In other words, someone is trying to acquire a significant number of shares by purchasing both non-circulating and circulating stocks, in an attempt to launch a takeover of Every Moment.
Acquisitions between capitals have never been simple as some think, who don’t understand stocks but believe they know it all.
Acquisitions are incredibly complex, involving many elements, the most important being funding.
If a listed company’s market value is ten billion, to forcibly acquire this company, one needs at least thirteen billion in capital, at the very least.
Typically, analysts advise those attempting this—they need to prepare twenty billion and also face the risk of possible failure.
The reason for such a high premium is that most listed companies have something called a "repurchase clause."
This clause is written into the contract from the very first time shareholders join the company.
When the company faces a hostile takeover, the board has the authority to repurchase shareholders’ stock at a certain premium over the market price.
This price is pre-agreed upon, following an unwritten rule, that is, it must be no less than thirty percent.
In a hostile bid for a ten-billion company, they need to produce one hundred thirty percent of both circulating and non-circulating stocks to reclaim equity, so to forcibly acquire, they need at least one hundred thirty percent of the market value.
Every Moment’s annual profits make many people’s eyes envious, yet they have no means.
These Mariluo people are well aware of how the Federation’s capital games are played, fixing board susceptibility before the Federation people can react.
Within it are Federation mainland investment institutions, free investors, and banking investments, then they divide the remaining shares into small parts, given to puppets, appearing as if everyone holds a fraction of shares, with none exceeding twenty percent.
But in reality, about forty to fifty percent is in the hands of Every Moment’s chairman, controlling everything from behind!
Previously, people wanted a hand in this but had no good way.
Those small Federation shareholders wouldn’t sell their shares, such a high-yield company is rare in the Federation.
Thus, their only option is the stock market; after acquiring over three percent through circulating stocks, they sound the takeover war horn.
However, Every Moment’s value is too high, once shareholders learn of a hostile takeover, without Every Moment’s chairman persuading, they will elevate the stock price themselves.
The millions in circulating stocks might end up costing over double to acquire, and yet, not being the major shareholder, entering the board requires another round of stock dilution and reissuance.
Ultimately, possibly spending seven to eight billion or even ten billion, acquiring less than twenty percent of shares, seemingly becoming a major shareholder, remains tightly controlled by the Mariluo.
People are envious yet can only envy.
But now, things have changed.
Lynch’s press conference has sounded the horn for a total assault, as stock prices plummet, capital senses the sweet scent of blood, circling Every Moment, snapping up pieces.
Now, hoping shareholders will elevate stock prices by themselves?
They only wish their shares had legs, lamenting their slow and overpriced sale, deterring buyers, leaving no mind for launching Every Moment’s defense!
Initially, Every Moment missed this issue because it was swallowed through multiple small accounts, per Federation’s financial law, if an account acquires circulating stock reaching three percent of the total shares, documentation must be submitted to all parties.
To determine whether it’s normal investment or acquisitions.
If it’s acquisitions, it’s divided into normal and hostile acquisitions.
The former requires the stock account company or individual to discuss acquisitions with Every Moment, finally issuing an announcement.
If hostile, the Financial Supervisory Commission will initiate hostile takeover regulations, monitoring operations on both sides, ensuring ordinary shareholders’ interests aren’t harmed.
Hostile takeovers occur in multiple stages, once initiated, cannot easily stop, they must face investigations for "disrupting financial market order" otherwise.
Hence, early capital wars often show no obvious signals.
Before high-handed brawls, they will vigilantly prepare entirely. 𝗳𝚛𝗲𝕖𝚠𝚎𝚋𝗻𝗼𝕧𝗲𝐥.𝚌𝚘𝐦
High turnover rates are signals, massive small entries are also a signal; discovering these requires constant monitoring and analysis.
When those have eaten enough, they transfer scattered stocks into a single account, exceeding three or even five percent, and directly initiate takeover.
Coupled with the frequent contact of small shareholders within the company by certain individuals, it’s undoubtedly an attempt to swallow Every Moment whole.
This is Every Moment’s weakest moment since its founding!
Due to the significant reduction in market value, downgrades in bank credit, they can’t even borrow from banks!
Of course, it’s normal, banks never lend to those desperately in need as they can’t afford interest or repay principal.
Banks only lend to those who don’t need money, can pay interest, and return principal.
Now, Every Moment in this trouble clearly doesn’t fit, bank-invested portions within the company will revert from equity to debt!
Banks have long accustomed themselves to convert loaned money into equity in fast-developing companies, necessary when converting equity back to debt, never suffering a loss.
"Mr. President, today’s turnover has begun to decline, we’re running out of time."
Mr. President looked haggard, reeking of alcohol, "Why do you say that?"
The analyst pushed his glasses up his nose, "A decline in turnover means circulating shares decrease, some already in those people’s accounts, others possibly noticing the issue, opting to watch."
"Isn’t that good news for us?", with a not-so-nimble mind he judged it as positive, at least the schemers acquire fewer shares.
The analyst shook his head, "It means our opponents are about ready for an all-out assault..."
"If you don’t come up with a solution, we might lose a lot of ground."
His words sobered Mr. President significantly, he asked the analyst, "So what should I do?"
