Just 2 years ago, Ingram Micro was acquired by a Chinese company that paid them $6 billion in cash, nearly 40% more than their then stock price.
It was an incredible deal. Why pay so much? And why would a regional Chinese airline buy a US-based IT distributor?
Now, Ingram's Chinese owner is falling apart.
However, HNA is going down swinging, as Bloomberg reports, HNA Co-Chairman is not blaming their dangerous debt-fueled expansion but a conspiracy:
They want to disrupt the entire Chinese economy, then disrupt HNA, leading to social unrest, subverting the entire 19th Party Congress... This is their conspiracy, these are their evil motives, and they’ve been plotting for a long time.
While that sounds like an exciting movie plot, the reality is banaler.
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**** ****** ******* *****,*** *** *******, *** *** ***** ** ***** money **** *** *** *********:
******* ************ *** *****, ***** ***** ** pay *** ******** ** ******* ** debt **** ****, *** **** ** with ******* *** ** ***** ***** from *** *********.... *** ******** ******* *** employees * *** ********** ******* **** promises * ******* ********** ****** ** 9.5% *** **** ***** *********** ***** as **** ** **%, ********* ** documents ******** ** *** **** ****** Journal.
***, *** *** ******* *****'* ********* leader** ***** *******:
***** ********** ******* *** ********* ***** Central ********* **** ** ******* ** its ****
**** ** **** *** ***? *** Chinese ********** *** ****** **** *** HNA ** **** **** **. ****, HNA's framing ** * ********** ******* *** Chinese ********** ***** **** **** *** government ********** ****.
*******, ** *** *** ****** ** one ** *** ******** ******* ********* HNA *** ****** *** ** *** last *** *****, *** ********* *** ********** is ****. **** ****** ****, *** was ******** ****** **** $** ******* ** ****** this ****.
******, ***** *** ** * ****** side. ***** ********* **** ****** ***** ** sold *** ** * ******** ** their *********** *****, ***** ***** *** hurt ******'* ******** ************ ***** **** have ******* ****** *** *** ***** be * **** *** ******* *** wants ***** ****** ** ******** *******. Does ****** **** ** *** ******?
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Comments (11)
Bas Poiesz
Well it's safe to say the WSJ subscription is paying off John!
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Chalon Dilber
I think the central committee and Mr. Xi will go with math and common sense over fear mongering toadyism on this one. Plus they need to keep their powder dry for the much more fundamentally serious bailouts infrastructure investments on the horizon.
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Undisclosed Manufacturer #1
Why take personal responsibility when you can blame it on the boogeyman? I'm sorry, boogey"person". Hope I didn't offend anyone.
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John Honovich
The 'conspiracy' is evidently having an impact. Today, report of HNA laying off 25% of its workforce (~100,000 people).
No word on impact to Ingram directly but not a bullish sign to have that massive of a move.
Also, in January, HNA denied reports they were planning to sell Ingram to Synnex. However, given HNA's continued deterioration, it is growing more likely that something will happen with Ingram.
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John Honovich
Now, HNA is being bailed out by the Chinese government - Bloomberg: China Prepares State Support for HNA Fundraising
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John Honovich
Update: HNA's Co-Chairman, who earlier this declared HNA to be a "Victim of Conspiracy Against China", has died, falling while trying to take pictures in France.
Given HNA's troubled state and his conspiracy claim, this has generated various conspiracy theories for his death. Conspiracies aside, this has created more challenges for the embattled company.
Also, in May, Reuters reported that HNA was trying to sell Ingram, which HNA quickly denied. HNA's financial problems continue so any number of assets are likely to be sold.
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