Chapter 392: Cutting Off a Piece of Flesh
Alba, Irwin, and the rest of Rinto's senior management had already arrived in Toronto long before.
When they heard their bid had beaten all competitors and won the support of Gala Aluminum's board, they couldn't sit still.
On the first day they got the news, they jumped up, cheering enthusiastically, and then quickly boarded a plane to engage in deeper negotiations with Gala Aluminum.
Their offer of 38.1 billion magnesium dollars left no doubts at this critical juncture.
Both parties showed unwavering resolve regarding the terms of the deal.
Certain crucial conditions were added, such as penalties for breach of contract. If either side violated the agreement, a hefty penalty—nearly 3% of the total deal amount, exceeding one billion magnesium dollars—would be paid.
Of course, these clauses required approval through a shareholder vote.
For an international giant like Gala Aluminum, with dispersed shareholding, company rules dictated that at least 86% shareholder approval was necessary for a complete acquisition to proceed.
This policy was established precisely to prevent easy takeovers and protect the interests of most shareholders.
A century-old enterprise naturally set high thresholds for being acquired, which explained why Rinto had offered such a high premium.
If the price wasn't high enough to attract overwhelming shareholder approval, even the board's consent wouldn't suffice.
"Wiggins, Richard..."
Alba led the way into the conference room, with senior Rinto executives and board representatives trailing confidently behind.
Their proud and confident mood was clear for all to see.
They had already held multiple meetings and extensive discussions, so everyone was quite familiar with one another.
After exchanging friendly greetings, Richard, perhaps the most level-headed among them, spoke first: "Our press conference today has two main goals. First, Gala Aluminum, as a publicly listed company, has a responsibility to announce major strategic decisions to the public, confirming to everyone that Gala Aluminum and Rinto will engage in the closest and deepest cooperation. Second, through this announcement and the media's dissemination, we aim to communicate our board's decision clearly to all our shareholders, helping them make the right voting choice."
"Our position is clear: we wholeheartedly support Rinto's offer," Wiggins smiled broadly.
Alba was well aware that Wiggins and the rest were satisfied with the proposal, so he wasn't worried about the board reversing their decision. Yet, even with the board's backing, a lingering worry persisted, nagging him like a thorn:
"Has Li Tang made any recent moves?" Alba asked cautiously.
"Li Tang definitely won't reach the 14% shareholding threshold," Wiggins chuckled confidently. "He came desperately begging me for shares just a few days ago. I could clearly see how anxious and powerless he had become."
"You refused him?"
"Of course, I refused him."
"That's good." Alba breathed a sigh of relief, though not entirely relaxed yet. "We must still persuade every shareholder holding more than a 0.1% stake to remain vigilant. Even one major shareholder's opposition could fatally damage our cooperation."
"Rest assured," Wiggins laughed reassuringly, patting Alba's shoulder. "We've already contacted all the major shareholders. I can guarantee you, 100%, every shareholder capable of influencing the outcome fully supports Rinto's offer. We've seen your sincerity."
"But there are always individuals who might oppose the deal," Alba reminded cautiously.
"Small shareholders who hold a few hundred or thousand shares have no meaningful impact if they oppose us."
"But little votes can add up, so caution is still necessary." Alba genuinely wished to avoid any surprises. "Wiggins, Richard, everyone—please ensure all shareholders stay unified and achieve mutual benefit!"
The biggest potential issue remained Li Tang, holding around 13.3% of Gala Aluminum. Alba wasn't sure if Li Tang had increased his stake recently.
This figure appeared safe, but given Li Tang's reputation, if he publicly opposed the deal, his stance would inevitably generate significant attention and influence. The mining and capital markets contained many who blindly followed Li Tang's every move.
If these followers voted against the acquisition, it could genuinely threaten the entire deal.
"There will be no surprises," Wiggins repeated confidently. "Our board and shareholders are extremely united!"
Richard glanced at his watch, ending their discussion. "It's nearly time for the press conference. Let's begin."
Though the conference hall was already enormous, it remained densely packed, a sea of people and flashing lights.
Richard, representing Gala Aluminum, walked to the center podium, cleared his throat into the microphone, and officially announced:
"The board of Gala Aluminum has decided to accept Rinto's acquisition offer! Pending shareholder approval, Rinto will acquire all shares of Gala Aluminum for a total of 38.1 billion magnesium dollars!"
The audience erupted in an uproar.
The intense flashes of cameras merged into a blinding burst, illuminating the hall like the sun, rendering everyone momentarily blind.
As news spread swiftly through global media, the entire mining world buzzed with discussions. After all, this was the largest acquisition in mining history so far—truly unprecedented.
Li Tang quickly learned about the press conference through special channels. But truthfully, he hadn't needed any special confirmation—he had always known it would turn out this way.
He picked up the phone and dialed Alice's number.
"Boss!" Alice's voice was weary. "Are you still in Toronto?"
"Yes," Li Tang replied directly. "Gala Aluminum's board just announced they've accepted Rinto's offer."
"Jiangda Securities already informed me," Alice said uneasily. "I didn't expect Gala Aluminum's board to make a decision so quickly!"
"Didn't you see Rinto's offer?"
"Yes, 38.1 billion magnesium dollars—it sets a new record! This figure is beyond anyone's wildest imagination," Alice exclaimed, clearly stunned. "Even at 85 magnesium dollars per share, Gala Aluminum's price was already inflated due to acquisition rumors. I never expected Rinto would offer such a massive premium!"
"Well, Gala Aluminum is one of the world's three largest aluminum companies," Li Tang reminded gently.
"Still, this acquisition is absurdly aggressive!"
Alice held strong opinions about the mining industry: "Whether it's Rinto or giants like BHP, Salty Valley, or Magnesium Aluminum Group, their pursuit of Gala Aluminum is extremely irrational. They're obsessed with expanding their scale, desperately seeking monopolistic positions to maximize profits. In recent years, we've seen repeated mega-acquisitions, each one larger and crazier, continuously reshaping industry perceptions. The industry—especially at the very top—seems trapped in an endless cycle of reckless acquisitions."
"Acquisitions are the quickest way to grow and expand," Li Tang replied, fully understanding these mining giants' motivations.
"Yes, you're right. Over the past few years, companies that boldly pursued acquisitions generally ended up profitable. The gamble often paid off," Alice acknowledged, but then added thoughtfully, "Yet these acquisitions keep growing riskier, with increasingly exaggerated premiums. Most of these acquisitions occur at market peaks. The mining sector's rapid growth has allowed companies to manage the immense financial pressures of their debts. But I want to ask these companies engaged in endless high-priced acquisitions: Are they absolutely certain that the mining industry can sustain this level of growth indefinitely?"
She paused briefly before answering her own question: "If the global mining industry experiences stagnation—or even a temporary downturn—these huge, leveraged acquisitions could crush the parent companies beneath them."
Her words felt slightly out of place, especially given the current market environment. Globally, whether investors or industry insiders, everyone was optimistic, enthusiastically praising the mining industry's outlook.
Many renowned experts proclaimed that this rapid growth had only just begun, and the road ahead was long and promising.
Yet, amidst a world captivated by such feverish enthusiasm, Alice had surprisingly started to express doubts, or at least, caution toward the entire industry.
Li Tang had encountered similar sentiments from her in the past.
When he first met Alice, she passionately elaborated on the immense future potential of China's mining industry. Years passed, and events unfolded exactly as she had predicted: China's mining industry had entered a golden age of unprecedented prosperity, and this boom had driven the global resource industry to flourish as well.
"Why do you have such incredible foresight?" Li Tang remarked with genuine admiration.
He had initially recruited Alice precisely because of her exceptional strategic thinking and keen judgment. Over the past few years, however, Alice had mostly immersed herself in the daily operations of Lianying Mining and managed various investment projects under Li Tang Shengshi Holdings. Her responsibilities primarily consisted of executing Li Tang's instructions and reporting on financial matters.
It had been quite some time since she last exhibited the extraordinary foresight she once possessed.
"I don't think it's foresight," Alice responded modestly. "I just think these companies are acting recklessly, and it's bound to cause trouble in the future." After working closely with Li Tang for so long, she occasionally felt inadequate, believing her own understanding lagged far behind Li Tang's insights. "Boss, you're the one with true foresight!"
"No need for flattery," Li Tang laughed softly, adding seriously, "Your analysis is correct. The global mining industry is indeed entering a phase of madness. Many companies behave like addicts, obsessed with mergers and expansions. The tsunami of capital is coming, and many risk-takers will eventually be swept away."
"Still," Alice said happily, "this frenzy among mining giants is actually good news for us. Rinto's bid of 101 magnesium dollars per share means the initial two billion magnesium dollars we invested have practically doubled! Based on our original one-billion magnesium-dollar investment, our profit rate is nearly 200%! Even the shares we bought later at higher prices have yielded considerable returns!"
Li Tang was already well aware of the investment profits, but since the money wasn't yet securely in his pocket, he felt somewhat uneasy. That was precisely why he had called Alice—to set his mind at ease.
"How is the transaction with that sovereign fund progressing?" Li Tang asked urgently.
"It's already completed," Alice replied without hesitation. "However, that 1.1% stake was purchased at a loss. Even at Rinto's offer price, we're losing nine magnesium dollars per share."
"As long as it's done, that's enough," Li Tang exhaled deeply, clearly relieved.
Oddly enough, it sounded as if he were happy about the loss.
"You think such a loss is worth celebrating?" Alice was puzzled.
"Our stake has finally reached 14%—that's what truly matters!" Li Tang laughed openly.
"Indeed," Alice realized what Li Tang was aiming for. "It seems you anticipated from the start that Rinto would emerge as the winner of this high-profile acquisition battle. Do you have someone planted inside Rinto, by any chance?"
"No," Li Tang answered simply.
"Alright," Alice hesitated briefly before cautiously probing further. "Then what exactly do you plan to get from Rinto next?"
"I'm going to cut a piece of flesh from Rinto!" Li Tang declared firmly.
At Sankei Bussan.
Fukushima Rihiro hurriedly rushed into the president's office, breathing heavily. "The Gala Aluminum acquisition results are out!"
The president, a small elderly man with graying hair, was calmly practicing calligraphy with a brush. Without raising his eyes, he asked slowly, "What do you think of my writing?"
"Uh..." Fukushima Rihiro, anxious and distracted, had no interest in admiring calligraphy at the moment. But since he couldn't directly contradict the president, he reluctantly lowered his gaze to the characters written on the paper. Unable to discern whether it was good or bad, he gave a perfunctory thumbs-up. "Your calligraphy is truly masterful!"
"Enough, I know you don't understand calligraphy," the president finally lifted his head and glanced at Fukushima coldly.
Meeting the president's sharp eyes, Fukushima quickly lowered his head, as though scorched by fire. "I really do think your calligraphy is wonderful," he insisted timidly.
"Forget the calligraphy," the president set down the brush, temporarily abandoning his hobby. "You said just now that Gala Aluminum's acquisition has been decided—what's the result?"
Taking a deep breath, Fukushima braced himself, head bowed, not daring to meet the president's eyes. "Rinto's bid has gained approval from Gala Aluminum's board."
"Rinto?" The president appeared slightly surprised, but after a moment's thought, nodded understandingly. "Rinto has money, and they've elevated their aluminum and copper divisions to equal importance with their iron ore division. Their two strategic objectives are aluminum and copper. If they manage to acquire Gala Aluminum, half of their objective is achieved."
Fukushima cared little about Rinto's strategic goals; he anxiously continued providing details about the acquisition. "Rinto's total bid is 38.1 billion magnesium dollars."
"That's very high!" The president remarked in astonishment, before suddenly processing the information clearly. "Wait—38.1 billion magnesium dollars?"
"Correct," Fukushima confirmed.
"What's the average price per share?"
"101 magnesium dollars."
The president stared sharply at Fukushima. "How much did we sell our 5% stake in Gala Aluminum to Li Tang for?"
Fukushima hesitated, unable to say it aloud.
"Speak!" the president demanded harshly, each word piercing Fukushima's eardrums like sharp steel nails.
"Fifty-eight magnesium dollars per share," Fukushima replied nervously, shrinking back as though afraid the president might order him to commit seppuku right then and there. After all, a samurai sword, although decorative, hung prominently behind the president, and it certainly appeared sharp.
"How much did we lose?" The president's voice was ice-cold, intimidating.
"About eight hundred million magnesium dollars…" Fukushima mumbled miserably.
"Eight hundred million magnesium dollars!" the president, typically calm and composed, was now visibly shaking with rage. "This is the stupidest transaction of your entire career!"
A loud thud echoed as the heavy calligraphy brush fell onto the table, ink splattering across the paper in chaotic, irregular patterns—perfectly mirroring the disarray within both men's hearts.
Fukushima kept his head bowed, not daring to breathe loudly.
"What sort of contract did you sign with Lianying Mining?" The president, still fuming, knew Fukushima had used Gala Aluminum shares to obtain shipping contracts from Li Tang.
Initially, they had little hope left in Gala Aluminum shares, aiming instead to trade them at an appropriate price. By using those shares as leverage, they had successfully secured shipping contracts from Li Tang, establishing a valuable relationship with the rising star.
Previously, everyone believed this was a beneficial trade. No one had anticipated Rinto's exceedingly generous offer.
"We secured a contract to transport five million tons of iron ore annually for Lianying Mining," Fukushima answered quietly.
"Ten-year or twenty-year contract?"
If it were at least ten years, totaling fifty million tons of iron ore, the transportation fees could at least partially offset their losses—possibly even fully recover their eight hundred million magnesium dollar deficit if the volumes increased over time.
"Three years," Fukushima whispered weakly, nearly collapsing.
"Three years?!" The president's breath grew shallow, struggling to breathe. Quickly, he pulled a small pill bottle from his sleeve, shakily placing a white pill into his mouth. Slowly, his palpitations eased slightly.
He glared at Fukushima, his tone icy and resolute. "Leave."
Leave?
This wasn't simply an order to leave the office—it meant leaving Sankei Bussan entirely!
Fukushima had devoted more than half his life to this company. Everything he had—status, power, and security—had been painstakingly earned. The thought of giving it all up terrified him.
For a man past fifty, starting over was unimaginable. Both physically and psychologically, it would be an unbearable challenge. The outside world wasn't kind to men his age either.
Desperately, he fell to his knees, prostrating himself fully on the floor.
"Please, President! Give me one more chance! Li Tang tricked me—I'll take back everything we lost from him!"
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 40 Chapters In Advance: patreon.com/Johanssen