Silicon Valley

Chapter 62: Repossession of shares

   The market value of Nicholas and Cisco is high, but it does not mean that the capital flow is also high!

   Citibank and Morgan Bank refused to lend. With the funds held by Cisco and Nicholas, Cisco’s stock price could not be stabilized at all. Henry knew that Sequoia Capital still had 2.7% of the shares in his hands. If all were sold, it would be nearly $1.4 billion. Such a big single sell will inevitably cause violent turbulence in Cisco's stock price, and Cisco must spend more money to stabilize the situation!

   If the AOL collapses again, then the capital needed by Cisco will be very large. But obviously, the AOL will definitely come to an end! ! !

   Before, Cisco had already spent a lot of money to deal with AOL. In fact, the combined capital of Nicholas and Cisco is already less than two billion U.S. dollars! In a short period of time, there is no money at all!

   "You go back to work first, I need to think quietly!"

   Throughout the afternoon, Henry stayed alone in the office. Because of the sudden backlash from Citibank and Morgan Bank this time, Cisco almost made Cisco very passive! Indeed, in the eyes of the bank, the market value of Cisco and Nicholas is inflated. In terms of influence and strength, it is far less powerful than the alliance of more than a dozen companies! Based on the principle of the supremacy of interests, the decision of Citibank and Morgan Bank seems to be very correct!

   Henry can also be regarded as having learned the cruelty of the capital world!

   It is clear that the things that have been said before, the backwater is only between changing hands! ! !

   Time passed a little bit, outside the door, John Chambers and others walked around restlessly, always looking at the office door from time to time...

   Until a quarter past five in the afternoon, the door of Henry's office suddenly opened, and everyone turned their heads to look here!

   Henry walked out blankly.

   "Chairman, what do you want to do?" John Chambers stepped forward and asked.

   Henry said word by word: "I have decided to temporarily abandon the acquisition of MCI!"

   Everyone looked very surprised and looked at each other!

   Henry waved his hand to make everyone quiet, and then said coldly: "Chambers, you write down all the telecommunications companies in the AOL alliance. One day, I will swallow them all!!!"

   "Yes!!!" John Chambers trembled in his heart and immediately responded loudly. Later, John Chambers asked, "Chairman, what shall we do now? The top priority is how to deal with the sale of shares by Sequoia Capital!!!"

   "Let them throw it!!!" Henry said coldly, "I want to take this opportunity to take back all Cisco shares!!!"

   How many switches and routers are needed for the development of the Internet, no one knows better than Henry! In the future, Cisco's market value will definitely reach hundreds of billions of dollars. Taking advantage of the cheap stock price, Henry doesn't mind getting some back!

  Henry walked in front of the crowd, and Zhizhu said in his hands: "MCI is not so easy to be acquired. Within three to five months, they won't want to take MCI. And this period of time is enough for us to raise money!"

   After that, Henry asked everyone to go home from get off work. However, John Chambers was left to discuss things!

"Chambers, you are personally responsible for taking back Cisco shares. Remember to seize the opportunity to get more shares with limited funds! Now the Nicholas Group, Cisco, and my personal deposits total 2.4 billion. U.S. dollars, if the company’s management also wants to invest in it, it’s okay! Remember, I must get back more shares this time!!!"

   Henry does not know how many people will sell Cisco shares this time, but Sequoia Capital is definitely one, maybe Citibank and Morgan Bank are also possible!

   "Chairman, please rest assured, I will ask the most professional team to help us!" John Chambers nodded.

   "Hmm!" Henry said, "Also, you start contacting other banks to see which bank is willing to lend us a loan?"

"Ok, no problem!"

  ……

  ……

   Cisco's stock price stabilized after a period of turbulence. But not long after, another volatility struck! This time is more serious than last time, the scale is larger, and the time-consuming is the longest. Citi, Morgan, and Sequoia Capital successively sold their shares, but in order to prevent the stock price from falling too fast, their tactics were very concealed. They did not sell their shares to the previous one, but dumped a little every day, which is difficult to detect! The transaction process is to complete transactions through thousands of trading accounts. Although each account has a small number of transactions, when added up, the total number is very huge!

   It is difficult for ordinary stockholders to notice the actions of Sequoia Capital, Citigroup, and JPMorgan Bank, but Cisco knows their operations in the stock market very well!

   "They started to act..." Henry said lightly, "Then we can't help but express it, right!"

"Chambers, you immediately spread the rumors that Cisco is losing money, or something else. In short, I want Cisco's stock price to plummet!!! In addition, Citi, Morgan, and Sequoia Capital will sell a large number of Cisco shares. Poke it out, I see how they secretly cash out money!!!"

   "Okay, I will do it now!" Chambers nodded.

The next day, the major media in the United States began to report many negative news about Cisco, such as a loss of 200 million US dollars last quarter, such as an accident at a Cisco factory that caused multiple casualties ~ www.NovelMTL.com ~ such as disagreements among the company management, etc. Wait for a lot of negative news. Then it reported that Citi, Morgan, and Sequoia Capital have all sold their shares on a large scale, and they are obviously ready to “flee”. The major media even listed a lot of data to prove that Sequoia Capital is indeed selling Cisco. The company's shares! ! !

   And Sequoia Capital, Citigroup, and Morgan sold their shares, which in turn proved that the negative news is very likely to be true!

   So, Cisco's stock price plummeted! ! !

   Sequoia Capital, Citigroup, and Morgan also changed from secret to open, and they suffered dumb losses and lost a lot of money for nothing! However, because the AOL is short selling Cisco shares, they still make more money!

   After all, the majority of investors have lost money!

   For Henry, it doesn't matter if Cisco's market value is lowered. He doesn't value it for a while. Lower is better, and it is more conducive to Henry's recovery of shares! But the stockholders' money has been discounted...Of course, if you are optimistic about Cisco and make long-term investments, you will definitely get rich!

   Two weeks later, the market value of Cisco dropped to 31 billion U.S. dollars, and it evaporated 20 billion U.S. dollars. However, Henry took back 15.6% of the shares! ! !

   After the stock market turmoil, Henry's personal shareholding in Cisco exceeded 73%, and Nicholas Group held 7%. Citi, Morgan, and Sequoia Capital have all sold the shares of clean Cisco. Since then, there is no half-line relationship with Cisco!

   However, Cisco and Nicholas don't have much money now, and Henry has only 100 million dollars left on hand!

   Want to acquire MCI company, it seems out of reach? (Seeking support~www.NovelMTL.com~ Book friends are welcome to visit and read, the latest, fastest and hottest serial works are all at ~www.NovelMTL.com~ For mobile phone users, please go to read.

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