Sina CEO - "Strong" Cao Guowei: Part 5

"Poison pill Plan" in Cao Guowei

"As a result, the actual reading done and the feeling is totally different." Cao Guowei exposure in the United States a lot of Silicon Valley "crazy" things. But Sina, as a major participant, we have taken some dramatic "story", the most classic case is the "poison pill Plan."

"It was a very complicated one week, a lot of things are very dramatic." Cao Guowei said that with the outside world Shanda described the raid Sina different story, the figures extremely sensitive Cao Guowei prior already guessed what happened. "Because of our transaction volume has never been so great. We were only more than 5,0 million shares, the trading volume reached more than 4,4 million shares, the real change hands more than 20 million. Then I think Chen Tianqiao comrades probably in action." 2005 February 8, Shanda on a large scale in buying Sina shares the same day, Cao Guowei fly to Australia are starting their own holiday of the Spring Festival.

The third day of arrival in Sydney, Cao Guowei received a telephone Chen Tianqiao was formally inform Shanda Sina shares of the acquisition. "At that time no surprise, the first reaction is that the company must take useful action." Shanda on February 18 to the U.S. Securities and Exchange Commission filing submitted to the acquisition, Sina hands has prepared a "poison pill Plan."

Many people feel that Sina three days after the SFC submitted to the United States "poison pill Plan", the action is too slow, even with this inference Sina fierce internal struggle. "In effect on February 19 and on the 20th is no transaction weekend, February 21 is the President of the United States, not the same transaction. Until February 22 is Shanda filing submitted after the first trading day, we can not Shanda prior to the record submitted to the poison pill Plan plan. "Cao Guowei explained.

In Cao Guowei poison pill Plan appears to continue to buy only stop Shanda Sina shares, the board of directors and managers is in place to be at that time needs to be done, what is not said tendentious. "Others have washed your yard. We can negotiate, but the problem is standing in the courtyard of the house, or if he further received 30 percent stake, we will not negotiate on the right poison pill Plan is the fight for equal rights. "

February 19, Cao Guowei return to the Beijing began preparing for negotiations with Shanda. "Shanda Sina acquisition means that there is a chance to do transactions, as a board and management, we must seriously consider this opportunity to make a choice." After the week, Cao Guowei are appearing in the daily China World Hotel, the St. Regis Hotel and Grand Hyatt Beijing, such as the most luxurious hotel, with investors from all over the world and lawyers.

In customary financial point of view to the Cao Guowei view, Shanda had purchased a large scale in a short time has not many Sina shares complex logic. "The reason is very simple, Sina's stock value at that time, was severely underestimated. Shanda Sina stock acquisition was a very safe, if not with Sina is the field of strategic cooperation, Shanda will be financially stable earnings."

After three months, Cao Guowei almost all the major issues in negotiations with Shanda. "In fact, the two sides on a reciprocal basis to make a rational longer negotiations. Most crucial thing is if we combined company, the relative value of the two sides on how to display. Shanda shares at that time are now in peak position, and Sina share prices in the doldrums. technically and operationally there are many difficulties, we have very serious negotiations, but still it is very difficult operation. "

Shanda Sina shares on the acquisition to Cao Guowei experienced a "worthy memorable" experience. "This is the first time in the United States capital market an Asian company of another Asian companies' did not expect 'acquisition. Regardless of the legal profession or the investment banking sector are milestone of things."

Source: 互联网周刊 Li Liang & Dong Xiaochang Jul. 5, 2007

Link:
Sina CEO - "Strong" Cao Guowei: Part 1
Sina CEO - "Strong" Cao Guowei: Part 2
Sina CEO - "Strong" Cao Guowei: Part 3
Sina CEO - "Strong" Cao Guowei: Part 4
Sina CEO - "Strong" Cao Guowei: Part 5