Chapter Seven White Zero Nine Boeing's Choice
Boeing is facing a huge crisis.
Although negotiations to merge Grumman on McDonald are still in progress, what happened is not a secret to many people.
With Hu Jiefang's identity, his every move in the United States fell into the eyes of those who were interested.
The purpose of the Chinese intervening in the negotiations for Grumman to acquire McDonald is simply obvious. Hu Wenhai's layout in China's domestic aviation field is also not a secret. A little collection can determine his strategic goals.
Xinke's investment in aviation manufacturing is completely free of cost. Just a Xinzhou 60 is willing to throw 5 billion yuan into it. The purpose of cultivating the market, digestion technology and exploration model is too obvious.
He pulled Grumman to kill the oil futures market. Now from the perspective of hindsight, it is clearly aimed at acquiring McDonald. With so many signs, Hu Jiefang appeared in the Chinese purchasing group, which is naturally the focus of the aviation industry.
How powerful is this airline order worth over $15 billion? To be honest, after digesting this order, McDonald can become a powerful opponent with McDonald.
After the total volume increases, the R&D costs will be diluted, and the selling price of McDonald's aircraft will further drop. In this way, the cost-effectiveness of McDonald's aircraft will pose a fatal threat to Boeing. The Chinese market is not only the last straw that crushes camels, but also the last shot in overtime on the court.
The civil aviation passenger aircraft market will thus produce an 8-magnitude earthquake, completely changing the current two strongholds. What is particularly fatal is that the rise of McDonald's rise poses greater threat to Boeing than Airbus, because McDonald's like Boeing are both American companies, and the North American market has equal opportunities for them.
Once McDonald rises again, the market share that cannibalize will definitely be much greater than that of Airbus.
One has gone down and the other has risen, and Boeing must prepare for the rain.
"What does Chinese mean?"
Frank Anderson Schronz, president of Boeing, has been chairman and CEO since 1985, served as Nixon's assistant secretary of state, and was responsible for the general manager of the commercial airliner projects of Boeing 70, 727 and 737. It can be said that it is a rare technical and administrative leader within Boeing, with extraordinary influence and execution.
He is an absolute power figure in the entire manufacturing field of the earth.
But even such a big man is now furious regardless of his image, scolding his subordinates to his dejectedness.
"You haven't won the passenger aircraft project of the Chinese procurement team, and you haven't even figured out the scale of the procurement before? Boeing should have a huge advantage in this project. After all, we and McDonald are the only ones that can provide large passenger aircraft in the United States. As for McDonald's performance over the years, I don't need to remind you? You have such a good brand, let's see what you have become?"
"The problem now is a purchase of $16.7 billion!"
Shi Longzi held the hip muscles on his hand, pointed his other hand at the documents on the table, and his face was covered with clouds.
"Everyone, this is no longer a business issue, but a question of which Boeing or Airbus can survive."
"Once McDonald receives this capital injection, competitiveness will seriously threaten Boeing's position in the North American market. If we cannot maintain our position in the North American market, we will be unstable in the competition with Airbus, and then weaken the rest. One will decline and the other will rise, and soon Airbus and McDonald will control the division of the Eurasian market. China is the key to this game, and Boeing must not let it fall into the hands of McDonald."
"Tell me, what can you do to prevent McDonald from getting this contract?"
After Shi Longzi finished speaking, no one spoke for a long time, which was simply amazing at Boeing's senior meeting.
The proud Boeing executives who used to be can't even come up with a solution?
"Phil, what about your opinion?"
There was no way, Schronz could only call the general himself. The first person he called was Boeing's vice president of commercial aircraft, Phil Condit. This is a senior executive who was a technician. He once served as Boeing's chief engineer and technical director, and now he also serves as the general manager of the 777 project's business unit. Once McDonald turned around, the most severely challenged area is his field.
“Now things are obvious…”
Phil Condit pondered for a moment, frowning: "The problem is not that there is no direction, our direction is very clear. To prevent McDonald from getting Chinese orders, one thing is needed, that is, to prevent McDonald from merging with Grumman."
"However, the problem is that we can hardly do anything about it." He hesitated for a moment, pursed his lips, carefully observed the expressions of others, and then continued: "In my opinion, the only way is to buy McDonald first before Grumman."
This is the plan that Phil Condit has been advancing for a long time, but for Boeing, the difficulty and cost of acquiring McDonald are too high. It was only after 1994, that is, after Phil Condit became the president of Boeing, that Boeing really started to advance this idea. And it was in the hands of Phil Condit that Boeing truly embarked on the road to the world.
However, at this time, the power within Boeing to support his proposal to acquire McDonald was still very limited.
Sure enough, when he came up with this proposal, almost a few of the senior executives in the conference room were shook their heads and sighed.
The low discussion sounded in the conference room for a moment, and the conclusions drawn were obviously not conducive to the implementation of Philcondit's proposal. At this moment, everyone in the conference room suddenly became quiet and looked towards the corner of the conference room.
It turned out that it was a young man slightly away from the conference table, and suddenly raised his hand. When Shi Longz nodded and pointed at him, the man stood up with a little excitement and said eagerly: "Since Grumman acquires McDonald, there is a Chinese influence here. Can we use official means to prevent this acquisition agreement in the name of threatening national security?"
The conference room was quiet, and there was no voice for discussion this time. Logically, this plan was very likely, especially Hu Jiefang himself appeared at the negotiation site for Grumman's acquisition of McDonald, which could not be concealed at all.
And if the Chinese have no "conspiracy" in it and spend $16.7 billion to support Grumman, are all Chinese living Lei Fengs? Obviously it is impossible. As long as someone with normal IQ analyzes it, you can see that Grumman must have reached some kind of sharing agreement with the Chinese.
Judging from the background of Grumman's military-industrial enterprises, the one who is most likely to be sacrificed is McDonald's civil aviation passenger aircraft business.
It can be imagined that after Grumman acquired McDonald's large passenger aircraft manufacturing technology was leaked to China.
Using this reason to oppose Grumman's acquisition of McDonald can be said to be twice the result with half the effort. It will not be too difficult to use some means to make Congress stand up and oppose this merger. Moreover, in the United States, forces such as McDonald, the Pentagon and Northrop will not be happy to see Grumman's successful acquisition of McDonald.
But it was such an obvious plan that no one clearly proposed at McDonald's high-level meeting except for a young man.
Is Boeing's senior executives all have a place to eat? Can't even think of such a simple strategy?
Of course not.
The reason is that, but everything in the world is related. Just as Hu Jiefang started to solve the problem of passenger aircraft procurement from China Railway Construction Investment, the key to the Chinese problem of Grumman's acquisition of McDonald is not the aviation field itself.
Think about it, the 5 billion US dollars in Hu Jiefang's hands were amplified by U.S. Bank of China, and the scale of funds of US$16.7 billion was able to leverage the scale of funds of US$16.7 billion in 1991, which was more valuable than the 100 billion US dollars twenty years later.
Then think about it again, what the Chinese purchasing group holds is a purchase fund of 50 billion US dollars.
Although Wall Street has just been cheated by Mr. Hu, business is business, and American financial consortiums will never be stingy with providing mortgage loan services to the Chinese. With this $50 billion base, how big can the procurement scale be achieved?
American industrial groups and financial consortiums have been crazy about these contracts long ago.
This is a carnival feast of capital.
Boeing has a market value of more than 30 billion yuan, and its old foundation has been saved in decades. It is indeed amazing in the industrial field, but it cannot arouse public anger.
What is public anger? When Chinese men are spilling money, you, Boeing, jumped out to create "***", that's it.
Boeing is doing this to be an enemy of the entire United States' industrial and financial capital!
So, even though Boeing knew that the truth was, he did not dare to mention this. He could only find a solution within the framework of Grumman and McDonald.
It’s like carving a boat and seeking a sword, and seeking a fish from a tree, which is too difficult.
Everyone in the Boeing conference room looked at me, and I looked at you, and was silent for a long time.
Shi Longzi had to cough, knock on the table, and hummed for three seconds like a toothache.
"Phil, you bring the globe, why don't we study the acquisition plan again..."
"To destroy Grumman's acquisition, we need to acquire at least 30% of McDonald's shares and then join forces with shareholders in McDonald's board of directors, so that we can stop McDonald's merger with Grumman on the board of directors."
When McDonald is incorporated into Grumman, the interests of some investors will inevitably be damaged. Major shareholders sacrifice the interests of small shareholders, which is a constant law that remains unchanged for thousands of years in the capital market.
Once McDonald is merged into Grumman and then receives China's Century order, the stock price will definitely rise to the sky. With such a prospect, the major shareholder will definitely not give up his shares easily.
However, Grumman's acquisition of McDonald must have to take a considerable portion of McDonald's shares into his own hands. The source of this part of the shares is only those relatively weak shareholders. In short, it is just to use various means to trap the shares in their hands.
Companies like McDonald have a large number of similar small shareholders, and these are potential partners of Boeing.
Regarding this part of the data, of course, Phil Condit doesn't need to find a globe now. The relevant information has already been in his mind.
"The current situation is very unfavorable to us, and we must adopt a premium acquisition strategy. This part of the shares requires at least 12 billion yuan. Even if Boeing temporarily adopts a global contraction strategy, draws profits from each subsidiary and branch, and adopts equity swaps, our liquidity gap is still very large."
"How much is needed?" Shi Longzi asked.
Philcondit pondered for a moment and hesitated to report a number.
"Another $5 billion is needed."
Five billion, even for Boeing, this is definitely not a small number. To raise this fund in a short period of time, it will be a great test of Shi Longz's ability.
But as Boeing president, Schronz's own abilities can certainly be regarded as outstanding. When it comes to taking risks, the president will not hesitate at all.
Soon, he made up his mind.
"I think everyone knows very well what the Chinese are doing with the 50 billion yuan. This is a protection fee, and they must respect the world overlords. They have no second choice."
Well, Shi Longzi was so smart that he didn't mention where the money came from. It was originally the meat cut off from the dog raised by the US. If you turn around and share a piece for your owner, the dog will be killed in vain.
You can tell at a glance that Shi Longzi, you are not a dog fan, who is thick-browed and big-eyed!
But who cares where the money comes from? Capital has no borders, and the profits that fall into the pocket are the most important. From this point of view, Shi Longzi's words are not wrong, and they are in line with the usual style of the American imperialist.
There will be many more things happening in the United States in the future when cutting their own wool. Industrial transfer, financial shearing industrial wool, subprime mortgage crisis, financial shearing middle-class wool. Refugees and white left-leaning businesses simply want to cut the wool of ordinary Americans.
Why should I feel guilty about the wool I cut with my own ability? Right?
Shi Longzi's eyes flashed across everyone's face in the conference room, and he was silent for a moment before continuing.
"Civil aviation passenger planes are the most cost-effective option on the Chinese purchasing list. Five billion down payments and a total price of 16.7 billion yuan. I think all directors should be very clear about what this means. This money is something that the Chinese must take out, either for McDonald or Boeing. It prevents McDonald from being incorporated into Grumman. Boeing is the only choice for the Chinese."
"I beg all the directors and investors behind it to help Boeing again at a critical moment. $12 billion in exchange for 30% of McDonald's shares may not be a cost-effective business. But if this allows Boeing to get the Chinese order, then all the losses will be recovered and more benefits will be earned. I don't think I need to say more in detail about how to calculate it."
"But if McDonald is allowed to merge into Grumman successfully and get this $16.7 billion order. In the next ten years, Boeing will have to face fierce competition from McDonald in North America. I don't think I need to say more in detail what kind of threats the interests of the directors and investors will be."
"I believe in your wisdom for how to make this choice."
Chapter completed!