“Activating shock fish” Policy has been employed by Haier in...

“Activating shock fish” Policy has been employed by Haier in acquisition of ailing companies for business expansion.

International acquisition is characterized by three stages. In Stage 1, “Big fish eat small fish”, companies powerful in capital, not technology, merger with less powerful companies. In Stage 2, “Fast fish eat slow fish”, these companies are powerful in technology, not capital instead. Microsoft, for example, started later than some other counterparts, however, it kept leading the industry with advanced technology and surpassed some old brands. In Stage 3, “Sharks eat sharks”, “Power Alliance” became popular in 1990s. Boeing merged with Mcdonnell in such circumstance. In China, “big fish” not allowed to eat “small fish”, nor “fast fish” and “sharks”, only “shock fish”.

“Shock fish” represent those companies which are well equipped but not well operated and can be vitalized if effective management is introduced.

.......... So where does FPA slot into this? None at all.
With a 20% stake it is going to put them in a prime position to mount a take over.
Either way it is good news.