Chapter 398: This is a Humiliating Deal
When Erick accepted the media interview, his main purpose—aside from exposing Li Tang's true nature—was to clearly express Rinto's stance to the public.
Simply put, Rinto would never yield to any threats, nor would they compromise with Li Tang!
They were already prepared to abandon their acquisition of Gala Aluminum.
Upon receiving this news, the Gala Aluminum board of directors was thrown into panic.
Wiggins urgently convened a board meeting and opened angrily, "Li Tang is destroying our great opportunity! He doesn't want to benefit himself, and he won't let us benefit either!"
"It wasn't appropriate for Rinto to publicly announce such a stance to the media. It doesn't help solve the conflict but only serves to escalate it further."
"In the past two days, Li Tang certainly must have seen all these news reports. Yet, he's still comfortably staying in his hotel, making no moves at all."
"This clearly indicates Li Tang has already made up his mind to oppose Rinto's offer, blocking the acquisition. If Rinto withdraws their bid and terminates the acquisition process, Li Tang's wishes will have come true."
"After what Rinto has declared publicly, they can't easily approach Li Tang again for reconciliation."
"The most dangerous situation now is that neither side wants to lose face, and the stalemate itself is lethal."
The board members all wore worried expressions.
At this point, the success or failure of the acquisition wasn't determined by their board, but rather hinged on whether Rinto and Li Tang could reach an agreement.
However, both sides were locked in a silent cold war, and enthusiasm to resolve the problem was rapidly cooling.
"We need to act as mediators and bring Rinto and Li Tang back to the negotiating table."
No matter how angry Wiggins was, he still had to patiently try to resolve the issue.
The Teachers' Retirement Fund was Gala Aluminum's second-largest shareholder, and the completion of the acquisition had huge financial implications for them.
Others might sit idly by, but they couldn't afford to do that—they had to act.
"Even if we bring both parties to the negotiation table, without finding common ground, it won't yield any positive result."
"Exactly. Right now, both sides are stubborn and unlikely to back down easily."
"Rinto's demand is clear—they want the acquisition, and their goal aligns with ours. But the core problem is that we still don't know exactly what Li Tang wants!"
"For negotiations to reach a positive outcome, we must meet Li Tang's demands so he'll stop obstructing the acquisition."
"I heard Li Tang is optimistic about our prospects in Hua Xia and is willing to help Gala Aluminum expand into the Chinese market!"
At this point, everyone turned their eyes to Richard.
Richard shook his head slowly, "So far, Li Tang hasn't seriously discussed with me any specific plans about expanding our aluminum market in Hua Xia. The media says Li Tang's goal is to transfer Gala Aluminum's technology to China, but this has not been confirmed by Li Tang himself."
Richard was skeptical. He preferred to believe Li Tang had ulterior motives. If Li Tang genuinely intended to invest in Gala Aluminum's long-term growth, he would have discussed those plans with Richard, the CEO, rather than relying on media speculation.
"To be honest, I still don't fully understand Li Tang's objectives," Richard concluded.
"No matter his intentions, we must come up with a solution that helps ease the tension between Li Tang and Rinto before their next meeting. At least with a reasonable plan, they'll have something substantial to discuss amicably."
Wiggins turned to Richard and instructed, "Quickly arrange a relaxing venue for the negotiation. Contact Li Tang and Alba to arrange their meeting as soon as possible. Meanwhile, we must prepare a proposal favorable to all three parties."
…
Li Tang readily accepted Gala Aluminum's invitation, pleased to attend.
From his perspective, having clearly stated his opposition to the acquisition to Rinto, he couldn't proactively approach Rinto for negotiation. Doing that would instantly reveal weakness beneath his tough exterior.
Rinto, on their side, had essentially grasped Li Tang's intentions. Understanding that Li Tang wanted to exploit their urgency to complete the Gala Aluminum acquisition and effectively extort them, Rinto publicly revealed Li Tang's malicious intentions and had taken a firm stance. Thus, they couldn't easily swallow their pride and approach Li Tang again.
Therefore, Gala Aluminum became the perfect intermediary between the two parties, facilitating the negotiation and allowing both Rinto and Li Tang to step down from their hardened positions gracefully.
The meeting took place in an upscale lakeside restaurant, offering a magnificent view of the vast, clear blue lake and Toronto's iconic CN Tower visible in the distance.
As Li Tang walked in, gentle piano music and a spacious, serene environment immediately lifted his mood.
Yet he intentionally arrived late, five minutes past the scheduled time.
When Alba, Erick, and Wiggins saw Li Tang's Eastern face appear, their eyes almost seemed to spit fire.
They were treating today's meeting very seriously, dressing up for the occasion. Despite Rinto's harsh media statements asserting they'd rather abandon Gala Aluminum than give in to Li Tang's demands, when facing this crucial meeting—which could decide the fate of the acquisition—they still considered it of utmost importance.
Li Tang also attached significant importance to this meeting, but he refused to reveal any weakness.
"You're right on time," Wiggins greeted Li Tang with a slightly awkward smile, standing up to welcome him.
Alba and others, despite their anger towards Li Tang, also stood up out of courtesy.
"Please, everyone, sit down. No need to be polite," Li Tang said casually, choosing the center seat facing the CN Tower, clearly appreciating Gala Aluminum's considerate arrangement intended to foster reconciliation.
"Today, for the first time, we officially sit down for formal discussions among our three parties," Wiggins began. He felt maintaining superficial politeness was exhausting, so he quickly dropped the façade and became straightforward and serious, his usual businesslike demeanor returning. Gesturing toward Richard, he said, "We have prepared a proposal we think is reasonable for all sides. Take a look."
The proposal was brief and quickly distributed to Li Tang and Alba.
Its contents were simple. It suggested proceeding with Rinto's acquisition of Gala Aluminum as planned. Since Li Tang valued Gala Aluminum's future and wished to retain some shares, his portion of stocks would remain with him. All other shareholders' shares would be sold to Rinto at the agreed price of 101 magnesium yuan per share.
Thus, Rinto would secure control of over 85% of Gala Aluminum's shares, essentially acquiring full control.
If implemented, Gala Aluminum's shareholders, Li Tang, and Rinto would all achieve their primary objectives.
This was a compromise—not perfect, but reasonable enough to satisfy everyone's needs to some extent.
Unfortunately, Wiggins had misjudged the real situation. He had believed media reports claiming Li Tang intended to hold Gala Aluminum shares and had also heard from Rinto's executives confirming Li Tang's remarks during their last meeting.
Verifying these two points, Wiggins mistakenly thought he understood Li Tang's true intentions.
He did not.
Only Li Tang knew his genuine goal. Although Rinto already suspected Li Tang was effectively holding them hostage, they still weren't entirely sure of his specific demands.
Li Tang and Alba simultaneously set down the proposal document and looked up at each other, understanding perfectly that this proposal missed the crucial point. It wouldn't work.
"With Gala Aluminum's representatives present, we might as well speak frankly," Alba suggested, believing having a third party present would expose Li Tang's sinister intentions clearly.
Li Tang was reluctant about discussing sensitive matters openly in front of Richard and Wiggins, given that the negotiations were primarily between him and Rinto. But Gala Aluminum wasn't exactly an outsider either, so he didn't mind their presence too much.
Looking calmly across at Alba and Erick, Li Tang smiled easily, "After our last discussion, it seems Rinto wasn't satisfied with my position, airing grievances through the media."
"It was just a routine interview, not specifically targeting anyone," Alba maintained his gentlemanly demeanor, glancing at Erick. "We only shared factual parts of our conversation. If you felt offended by that interview, I apologize—I had no intention of offending you."
"I assumed our last conversation was confidential. Apparently, it wasn't," Li Tang laughed gently, seemingly unbothered. "Is today's discussion confidential, or can it also be made public?"
"What do you prefer?" Alba asked.
"Either way suits me," Li Tang answered casually, smoothly deflecting the question.
"Your stance still hasn't changed?" Alba confirmed again.
"Of course. We must honor our original investment intentions," Li Tang affirmed.
"Then, I'm afraid our collaboration cannot proceed. Today's discussions might not yield any breakthrough," Alba replied, somewhat wearily. This demonstrated Rinto's firm stance clearly.
Just at the start of the meeting, the atmosphere was already tense, neither side giving ground.
Listening to their conversation, Wiggins was thoroughly confused. Alba and Li Tang's dialogue appeared empty and meaningless, yet seemed laden with unspoken complexities.
"Gentlemen, let's not get angry or impatient. We have plenty of time today, let's talk slowly," Wiggins quickly intervened, attempting to ease tensions. Raising the proposal document, he asked, "What do you both think about this proposal?"
Alba had considered Wiggins' plan seriously. For Rinto, even acquiring just 85% would effectively achieve their controlling goal. The proposal was thus potentially acceptable.
But speaking honestly, whether or not they accepted the proposal, what did it really matter?
The critical issue now was Li Tang's voting rights!
"The moment I reject the acquisition proposal, the entire deal will undoubtedly collapse!" Li Tang's voice wasn't loud, but it hit everyone's ears like a heavy hammer, leaving their ears buzzing.
Wiggins felt the anger he had barely suppressed surge up again, burning hotly within him.
But this was Li Tang's legitimate right!
He was exercising his rights strictly according to the company's rules!
Unless Gala Aluminum changed its corporate governance rules, there was absolutely nothing they could do to stop him.
"You're harming the interests of all shareholders, purely to satisfy your selfish desires!" Wiggins could only verbally condemn Li Tang, hoping it might exert some psychological pressure on him.
"If my decision truly hurts other shareholders' interests, I can only apologize," Li Tang replied calmly. Even if he recognized he was in the wrong, he wouldn't change course now.
Moreover, Li Tang also had no intention of completely destroying his relationship with Rinto.
Both sides were currently locked in a tense standoff, each holding their breath; whoever relented first would suffer a catastrophic defeat.
Seeing the stalemate between Li Tang, Rinto, and the Gala Aluminum board, Richard vaguely guessed at Li Tang's underlying intentions. He pondered briefly, then said, "Li, this deadlock among our three parties, always pulling against each other, is obviously unfavorable for resolving the issue."
"I didn't cause this," Li Tang responded with an innocent expression.
Richard had previously made a special call to Alba, exchanging their views before arriving at the meeting.
It was clear Alba could not represent Rinto in conceding directly to Li Tang. However, he could rely on Richard as an intermediary to push negotiations slowly toward a mutually acceptable target.
Rinto already knew Li Tang wanted to extract something valuable from them. Giving away their core businesses was impossible, but perhaps some less essential ventures could be negotiable.
Not bothering to mince words, Richard glanced at Alba and suggested straightforwardly, "Li, you're fundamentally an industrialist. Investment isn't your primary field, yet we have to admit your investment in Gala Aluminum has astonished the entire world. If you accept Rinto's offer, you'll receive substantial cash returns."
His words were factual and difficult to refute.
Li Tang nodded slightly. "That's correct."
"As one of the world's top mining magnates, two billion magnesium dollars is just a number to you. I'm certain you're more interested in long-term assets and sustainable business ventures than in just holding cash."
After laying the groundwork, Richard delivered the core message clearly: "Previously, during my discussions with Mr. Alba, I learned that Rinto is gradually optimizing its production capacity and plans to divest some business lines not central to its future strategy. These assets aren't necessarily unprofitable or resource-poor, but simply don't fit their long-term development plan. For example, their coal mining operations in Queensland, Western Australia, and parts of Africa. If you're interested, you could use the principal and considerable profits from your Gala Aluminum investment to acquire Rinto's coal mining assets."
This suggestion sounded helpful: "Given your existing coal assets like Maru River coal mine, acquiring Rinto's coal operations would grant you not only mineral rights but also access to world-leading coal extraction technologies and highly efficient management models."
"If you're interested in our coal assets, we can certainly discuss this further," Alba added politely.
Did Rinto's coal assets have potential?
Not really.
Otherwise, Rinto wouldn't be willing to part with them so readily.
Their global coal division produced merely twenty to thirty million tons annually, insufficient for economies of scale, resulting in high costs, low profitability, scattered locations, and complicated management.
It was essentially a messy business requiring considerable effort to reorganize.
If this production had come from a single mine, it would have immense value. Li Tang clearly understood this and shook his head: "I don't have much experience with coal mining operations, so I'm not interested in investing there. However, I've heard your Hope Iron Ore project—a joint venture with Hancock Exploration—is currently progressing rapidly. As far as I know, nearly one billion magnesium dollars in financing came from Hua Xia banks. Once operational, the majority of the iron ore will also head to the Hua Xia market. For such a project closely linked to Hua Xia, if a Chinese enterprise holds equity, it will definitely benefit future iron ore sales."
Indeed, he was still targeting Rinto's iron ore assets!
Alba hesitated, almost speaking but stopping himself short.
Would they really have to give up Gala Aluminum's acquisition?
Meeting Erick and Veduka's angry glares, Li Tang remained completely composed. "For Rinto, Hamori Iron Ore is clearly untouchable, representing your core interests. But Hope Iron Ore is just an ongoing construction project unlikely to contribute significantly to your finances in the short term."
His gaze was so determined—his intention to carve off a piece of Rinto's assets so unwavering—that it seemed unstoppable.
"We absolutely cannot—" Erick began angrily.
Alba pulled Erick back, raised his head, and stared sharply at Li Tang. "We only hold 50% equity in Hope Iron Ore, and significant capital injections are still required. How much equity are you aiming for, and what concrete benefits can you offer to the Hope project?"
"I can bring more substantial financing from various Hua Xia banks, further investments from my companies, and vast market opportunities!" Li Tang confidently replied. Regarding iron ore, his confidence was always unmatched. "If Rinto agrees, we're willing to acquire all 50% of your equity!"
Alba didn't immediately dismiss it, instead countered: "Do you know the planned production capacity of Hope Iron Ore?"
"55 million tons," Li Tang accurately replied.
"Exactly. Fifty-five million tons—that's another Winning Mining!" Alba sneered. "Hope Iron Ore represents one of Rinto's most important investments in recent years. It's impossible for us to hand it over to you!"
"You see, you refuse to concede anything, yet you want me to hand over my shares of Gala Aluminum!" Li Tang retorted coldly. "There's no free lunch in this world!"
"You're demanding far too much!" Alba would never exchange Rinto's core interests merely for Li Tang's 14.4% stake in Gala Aluminum.
This was a humiliating deal!
"You're unwilling to sell profitable operating mines. Mines under construction with promising futures are off-limits too."
Li Tang recognized his demands were excessive. But wasn't business fundamentally about bargaining?
Better to start with an aggressive demand, then gradually ease up if necessary.
"How about your iron ore subsidiary in Gala country? Annual output is only around 16 million tons. It's far away and troublesome to manage—sell it to me."
"Impossible!" Alba immediately refused.
"So, what's your suggestion?" Li Tang shrugged innocently. "You're making this discussion extremely difficult, and honestly, you're quite stingy."
"Stingy? It's your appetite that's overly ambitious!" Alba shot back angrily.
"Fine. Considering your position and for the sake of all Gala Aluminum shareholders, I'll take another step back. Transfer all exploration rights for Simandou's southern Blocks 3 and 4 to me!" Li Tang gritted his teeth dramatically. "You know well Guinea just ended a major strike, and the business environment there is extremely harsh. Without serious necessity, no one wants to invest there. As we say in Hua Xia, it's a hot potato. I'll generously take that trouble off Rinto's hands!"
The exploration rights for Simandou Blocks 3 and 4?
Previously, when discussing internally, someone within Rinto had suggested this but was quickly rejected by Alba.
Rinto was actively working to limit Li Tang's growth—for example, with the Marley River Iron Ore project. They worried Li Tang was amassing massive iron ore reserves, which, upon development, would allow him to completely dominate the iron ore market, becoming the leading player.
If Li Tang fully controlled Simandou, the impact would be beyond description.
The world's two highest-quality and largest undeveloped iron ore deposits—Simandou and Marley River—would both fall entirely under Li Tang's control!
Even now, Li Tang's partial ownership was already deeply unsettling to Rinto.
The three iron ore giants were all wary of Li Tang's rise!
"This decision is exceedingly difficult," Alba shook his head firmly. "To pay such a price just to complete Gala Aluminum's acquisition—we simply can't afford it."
"Hamori Iron Ore, Hope Iron Ore, Rinto Gala Iron Ore subsidiary, and Simandou rights—you choose one," Li Tang stated coldly. "The Gala Aluminum shareholder meeting deadline is approaching quickly. I hope you'll make your decision before then. If I hear nothing, I'll assume you've refused."
With that, Li Tang nodded politely to Wiggins and Richard, then led Alice and his team out decisively.
Inside the restaurant, stunned silence lingered.
"This is outright robbery!" Wiggins finally exclaimed bitterly as Li Tang's figure disappeared completely.
No wonder Li Tang had boldly invested four billion magnesium dollars at Gala Aluminum's most turbulent time. Clearly, he had been planning this from the start!
Now, everything that previously seemed strange suddenly became crystal clear.
Li Tang's terms were clearly laid out; the ball was now entirely in Rinto's court.
Only two outcomes remained—success or failure of the acquisition.
The final decision rested entirely with Rinto.
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