Who is the next Daifu - Follow-up on the internet's hidden plan

Author: Ding Xiuhong
Publisher:
Publish Date: 2006-09-01
Features: If not for the strong stakeholding of in Sina, on February 24, 2005, Chen Tianqiang and Wang Yan would have been drinking together in Abali, Heilongjiang, as guest speakers at the China Entrepreneurs Annual Meeting. But now, the two sides can only choose Beijing as the meeting location, and it creates a tense atmosphere for outsiders. However, this tense situation did not last long. By noon on the 24th, Chen Tianqiang was laughing nonstop on the phone, and Wang Yan appeared cheerfully at the 19th floor of the Ideal Building in Zhongguancun—this was the first time most Sina employees had seen Wang Yan in the office since the post-holiday period. But from the outside, the battle for control still seemed uncertain. In the morning of the 24th, as the spokesperson, Shen Jianming, the vice president of marketing and deputy general manager of corporate development at Sina, made his first public statement on the acquisition, expressing willingness to welcome good-faith cooperation from. Just then, Shen received a phone call. After the call, Shen began to emphasize in his responses that Sina would resist the hostile takeover by without board approval in the secondary market. Sources told our newspaper that the key call that changed Shen’s attitude was from Duan Yongji, the chairman of Tungsong Holdings. Analysts believe that Tungsong Holdings is highly likely to cash out from Sina, but Duan hopes Chen Tianqiang can acquire Sina’s shares held by Tungsong Holdings through an agreement and secure a better price. Sina insiders said that before the situation became clear, Sina’s management and board had prepared three contingency plans: First, accepting Chen Tianqiang’s takeover; second, implementing a "poison pill" plan to resist; the third, seen as the "ultimate trump card," is to withdraw the "poison pill" at any time and introduce a "white knight" like Yahoo or China Mobile to restrain. Sina’s "poison pill" toxicity On February 22, Sina’s management finally unveiled its belated "poison pill" plan. Jiang Haidian, a professor at the School of International Economics and Trade of China University of Foreign Languages, who has been closely following the case, analyzed that the "poison pill" plan includes various types such as employee poison pill, customer poison pill, and stock poison pill. However, Sina only implemented the stock poison pill, which shows insufficient preparation beforehand and is also related to Sina’s articles of association not having provisions for implementing a poison pill plan. If the poison pill plan is fully activated, it will have a greater restraining effect on hostile takeovers like the one by. The employee poison pill plan is divided into three types: gold, silver, and tin. For senior executives, it is a "golden parachute"; for middle managers, a "silver parachute"; and for general employees, a "tin parachute." If a hostile takeover occurs, the acquiring company must provide corresponding compensation to the employees of the acquired company. For example, the tin poison pill requires the acquiring company to provide employees of the acquired company with compensation for 24 months or longer in salary, or even lifelong social benefits. The customer poison pill requires the acquiring company to compensate the customers of the acquired company. Previously, when Oracle acquired, Oracle compensated’s customers. In the Sina acquisition case, if the customer poison pill plan is implemented, Sina’s advertising clients can demand that guarantee the quality of advertisements and website traffic. If these requirements are not met, compensation must be provided. Sina’s annual advertising revenue is hundreds of millions of yuan, and Sina employees