In economics, there is a consumer psychology called the "Veblen effect".
It refers to people's extravagant consumption through purchasing expensive goods or services in order to gain psychological satisfaction and demonstrate the superiority of their identity and status.
Within a certain group, the more expensive things are, the better they sell.
Han Chudong tried to invest in some luxury brands to attract consumers to buy. In fact, he himself was also enjoying the pleasure of consumption at this moment - by purchasing company shares.
Ordinary small-scale operations can no longer satisfy him. He can only enjoy a sense of accomplishment when doing business. Now he is pretending to be stupid in front of Aresio in order to let the other party relax his vigilance and try to get Gucci shares at a lower price.
People tend to be wary of smart people, and showing weakness in business negotiations is more advantageous to Han Chudong. With an ambiguous smile that all men understand, he said, "When you usually mention that you are a shareholder of Gucci, will they be excited? Recently, I have my eyes on a Hollywood star named Olivia Hussey. Her boyfriend is a shareholder of Tiffany. I always feel that she chose to be with that idiot just for the endorsement contract."
"Well... I'm not young anymore and I'm already married, but working in the fashion industry does make it easy for me to meet many beautiful girls, especially when Gucci holds a fashion show."
Aresio was a little overwhelmed because the image presented by Han Chudong was far from those seemingly decent businessmen. He was capable of some things, but it was better not to say them out loud. He would never talk about picking up girls like Han Chudong.
"Really? Fourteen million dollars, sell the shares to me!"
"...I'm sorry, Gucci is a very outstanding company. Your offer is reasonable, but it still does not meet my expectations." Mr. Alessio hesitated briefly, but ultimately shook his head.
Han Chudong frowned slightly, and then asked: "Then give me a price, how much do you want to transfer it to me?"
Quietly, the option of "whether to sell or not" was eliminated, and the topic focused on "how much are you willing to sell for?"
It was rare to meet such a straightforward buyer. A little impulse emerged in Aresio's heart at this moment. Considering the situation that the global economy was gradually cooling down and falling into the stagflation trap, it would be a safer approach to cash out the assets.
Holding on to your money and waiting will make it easier for you to act decisively when you come across a desired target. Moreover, Gucci has so many competitors, and with the economic downturn, sales expectations are also unclear.
After a brief consideration, he offered: "US$16 million. As long as you pay this much, the shares of my company will be yours, accounting for 17.48% of Gucci's total shares. It has stores in Miami and New York. When you are free, you can bring your female companion to your own store to shop. Isn't it great?"
Han Chudong pretended to be confused and replied, "Please wait a moment."
Then he pulled Mochizuki Kiko aside and whispered to her, "I'm playing dumb, but this guy really took me for a fool. Cooperate with me to lower the price later. Just act like you're unwilling."
Involving a big business worth more than 10 million US dollars, Mochizuki Kiko was nervous and worried. She lowered her voice and asked, "Are you sure you can make money by investing in such a company? In fact, Baofeng Electric is very good, but it is also short of money."
"There is no need for Baofeng Electric to be anxious. The expansion is too fast and the supporting facilities cannot keep up. Besides, there is sufficient capital and we can continue to apply for loans after acquiring the shares," Han Chudong added.
Then he sat back down at his desk and said to Alessio, "Your price is too high. I am only willing to pay 14.5 million U.S. dollars. In fact, my people are also in contact with the Gucci family. They have more shares and are willing to transfer the shares to me if I give up the decision-making power. The premium is not that high.
If you are not sincere, I will buy it from other places. It is said that they want me to raise 20 to 30 million US dollars. The deal can be made with a market value of 70 million US dollars. However, I think if I buy some shares first and then raise funds, I can get more shares. I don’t like being controlled by other shareholders. "
Acting both smart and stupid.
Aresio thought he knew a lot of information. Without consulting others, how could he have guessed that Han Chudong never told the truth? He was frightened for a moment.
Considering the recent serious infighting within the Gucci family and the struggle for power among several children after the founder's death, it is really possible that they will sell shares and divide up the family fortune. After all, the case has already gone to court.
Looking at Han Chudong's bid alone, it's actually quite conscientious, and I'm a little hesitant.
His reason was overwhelmed by impulse. He thought it would be good if he could make the second quarter's financial report look better. He raised the price again and said, "15 million and 400 thousand US dollars. I will never sell it for less than this number. With my shares, I have a director seat in the company, which is much better than the shares of the Gucci family that have lost decision-making power. If there was no investor who was ready to redeem the assets and I didn't want to sell the bonds at a low price, I would definitely not be willing to sell. Gucci has been developing very well."
Just as Han Chudong had instructed, Mochizuki Kiko took the initiative to cooperate and whispered in his ear, "It's one million four hundred thousand dollars more than our budget."
One million four hundred thousand US dollars is really not a big problem for Han Chudong.
Compared with the market value of Gucci in my memory, it is nothing. The important thing now is to buy all the shares that can be acquired first.
There is no wrong version in the 1619 book forum!
He looked embarrassed and remained silent for more than ten seconds. After taking two puffs of his cigar, he stretched out his hand and said, "Deal. If it's suitable, sign the contract as soon as possible. I'm even going to take out the money I'm going to use to buy a house in London. The funds will be in your account anytime after the contract is signed."
…
As long as both parties are willing to buy and sell, doing business is not that troublesome, especially when it comes to stocks, where resale is a common occurrence.
A company that sells handbags and clothing, which was not on the control list at all, drafted a bilingual contract that day and asked a lawyer to check it in detail the next morning.
Han Chudong worked with the accountant of Aresio Capital Management to go to the Union Bank of Switzerland to conduct the transfer transaction.
Before coming to Europe, the funds had already been transferred from Bank of America to Union Bank of Switzerland, but inter-bank transactions are not that convenient at present.
Before the funds actually arrived, a day was set aside to check whether the shares actually existed. Han Chudong personally went to the Gucci headquarters in Florence to verify the shareholding situation of Aresio Capital Management. After confirming that there was no problem, he contacted Aresio by phone and told him that they were happy to work together.
The current president of Gucci is Maurizio Gucci. Upon learning the news of the share change, he came to the company in person and invited Han Chudong to dinner to welcome the new shareholder...