Analysis said nine city or borrow "poison pill" against Tang June acquisition plan

Recently, there is news that Tang June will take to buy nine cities in the form of a large number of circulating shares, to help Xinhua have invested in the Shanghai Joint tour company to achieve the shell listing, and the action time may be the nine city released 2010 Q1 earnings the next day. But the news quickly by the nine cities and Tang June rumor, the Nineth City public Relations, said: "For some people with ulterior motives to achieve hype intent to use the media spread false rumors, expressed solemn protest, and will retain legal power."　　"Recently, the industry has told game developers that the Shanghai joint Tour has not abandoned the acquisition of nine cities to complete the listing efforts, the biggest obstacle is the nine cities in the January 2009 poison pill plan." In May this year, Tang June revealed that its billion-dollar acquisition of the Shanghai Joint tour company will be listed in the Nasdaq within three months, and the news was confirmed by joint Tour CEO Leung. Then came the first nine city CEO or will join Shanghai Joint Tour news, so many people in the industry judged this is the beginning of close cooperation between the two sides. Analysts said that although the Shanghai Joint Tour has two sets of independent game engine and online games products, but from the current scale, profitability and other aspects to meet the Nasdaq listing conditions is not possible, on the other hand, the nine cities since the loss of "World of Warcraft" agent rights, continuous number of new products have failed to achieve profit　　At present, the share price has almost fallen to the lowest level in history, so it is feasible for Shanghai joint tour to acquire nine cities. Joint tour to borrow nine city shell listing? The Double Chun heart each thinks is understood, Shanghai Joint Tour CEO Leung also has the rich capital operation experience. Leung has successfully operated a Hong Kong-run crackling games company listing in Hong Kong, which has led to the China Net's takeover of the light-pass case.　　A previous source said the choice of Shanghai Joint tour was based on forecasts of a sharp fall in share prices on the day of the nine-city report, and that the Shanghai Joint tour would issue an "offer" to other shareholders in the city on the day of the deal to seek the first time to buy. According to industry insiders said, although the nine city's current share price has fallen to 4.18 U.S. dollars, but the nine cities as early as January 8, 2009, has made an anti-takeover "poison pill plan."　　The plan stipulates that, after January 22, 09, when a person or group acquires more than 15% of the nine cities with voting securities, a shareholder other than the purchaser has the right to purchase a stake of twice times the value of the line price at the set line price. Nine city in January 2009 's share price from the highest peak of 28.5 U.S. dollars to 14 U.S. dollars (of which the lowest price reached 9.97 U.S. dollars) Nine city, said, "The (poison pill) is based on the current company's share price in the investment market is very low, in order to avoid the nine city shares in the malicious takeover Therefore, the implementation of this plan to ensure the maximization of shareholder benefits.　　"It is understood that the scheme is valid until January 2019, so even if the price of the nine cities has been low, it can still be used to increase the cost of the acquirer to avoid being bought." When in Grand, Tang June has commanded a grand stake in Sina analysts said that Tang June in February 2005 commanded a grand acquisition of Sina 19.5% stake, and then Sina adopted "Poison pill Plan "to resist, which led to the takeover failure, so I believe that the Shanghai Joint tour for the direct low-cost absorption of a large number of nine-city shares of the acquisition of the way will be cautious. On the other hand, the original nine city's third largest shareholder EA is still in the reduction of nine city shares, the proportion of its shareholding has been reduced from 12.95% to 7.74%.　　Data show that Zhu currently holds 27.6% per cent of the shares; Bosma 2¥q holds 18.1%.　　What is poison pill plan?　　Poison pill is a strategy aimed at preventing malicious takeovers, officially named "Equity dilution measures". Usually, once an unauthorized party acquires a large stake in the target company (typically 10% to 20% per cent of the shares), the poison pill program is launched, causing the IPO to flood the market.　　Once the poison pill program is triggered, all other shareholders have the opportunity to buy new shares at low prices, thus greatly diluting the ownership of the acquirer, which in turn makes the acquisition prohibitively expensive, deterring the hostile acquirer and reducing the interest of the acquirer in order to resist the takeover. Nineth City Poison pill plan: After the end of business on January 22, 2009, each of the Nineth City issued common shares will be granted an interest, which will be attached to the nine city issued shares, and will not issue a separate certificate of entitlement, only when a person or group (i.e. the acquirer) has nine cities not less than 15% Where the right to vote is held (that is, when the event is triggered), the interest party can be exercised. In the event of triggering events, shareholders other than the acquirer may purchase a twice-fold stake in the value of the line price set in the shareholder equity plan.　　Unless it is suspended by Kowloon City or has been redeemed by the Kowloon City before its expiry, the shareholders ' equity plan will be effective until January 8, 2019. Sina poison pill program: Each shareholder who is recorded on the date of the equity confirmation day is given a share of the shares. Once 10% or more of Sina's common stock is acquired, the owner of the stake (except the acquirer) will have the right to buy the shares of Sina at half price. If Sina is subsequently acquired, the owner of the stake will have the right to buy the shares at half price. (Edit Zhang Xing)