The Son of Finance of the Great Age

  Chapter 654 Defending Stanley

  Because of the subsequent impact of the Raymond Brothers incident, the entire market fell in panic. For the Paulson Fund and the Castle Fund, due to the increased volatility of Σ (Sigma) in the market and greatly increased profit opportunities, they both applied to withdraw from this short-selling alliance. So so far, only Soros and the other three are still coveting Stanley and Goodman's company together.

   "George, those two quit, won't it affect our plan?"

  Julian Robertson asked carefully. He has always had certain views on these two upstarts, but Soros has always insisted on keeping them in the alliance, which made him suppress his dissatisfaction. Now that the two have withdrawn, he should have let out a sigh of relief, but he was afraid that the other party might leak the secret, and he was a little worried about gains and losses.

   "Julian, you are overthinking, the situation has developed to the present, what secrets can you tell?"

Soros adjusted his sun hat, chuckled, and sneered at Julian Robertson's worries, "Everyone on Earth now knows that Stanley and Goodman are in big trouble, and any hedge fund with a little thought is trying to find a way Short them. Although I don't know what these two think, but now that we have sufficient liquidity, there is no need to force others to stay, right? Let them go. By the way, you know that Stanley Are you looking to merge with Wachovia?"

   "What? Wachovia?"

  Julian Robertson was taken aback, and his face changed, "If this is the case, the troubles Stanley encountered will be easily solved. I just don't know, how is the negotiation between the two parties going?"

   "Don't worry, I don't think this deal will be done!"

Compared with Julian Robertson's shock, Soros's reaction was much colder, "Without Paulson's rescue plan, it would be difficult for Stanley to pass this level. However, Wachovia is not a very good counterparty. Among other things, whether Wachovia merged with Stanley or Stanley acquired Wachovia is still a matter of debate. So far, I am most worried about the threat from China."

"You mean the rumors about Huatou?" Julian Robertson's face became ugly again, "Huaxia people seem to own 9.9% of Stanley's shares, so what are they planning to do now if they want to sell again? It can't be Thinking about holding a shareholding?"

"No matter what they want to do, their Chinese identity is a big problem!" Soros raised the corners of his mouth unconsciously, and a mysterious smile appeared on his face, "Let me arrange it, and we will fly directly later." Capitol Hill, let's see if something happens."

  …

  Soros's guess is not wrong at all. Stanley is indeed negotiating with Wachovia, but both sides have ulterior motives. Stanley hopes to maintain independence or merge Wachovia. As for Wachovia Bank, because the government promised to buy toxic assets, they lost interest in merging investment banks, and there is a Goodman company as a backup, so they are even less interested in Stanley.

  Naturally, in this case, the teams of the two sides only came into contact with each other for a while, and they realized that the other party was insincere, and broke up unhappy.

   "Mr. Gao, is your waist better?"

   And on the top floor of the Stanley headquarters, there are three offices with Huatou nameplates on them. John Mark even appeared here and greeted Gao Dongfang, the general manager of Huatou.

  Gao Dongfang and his team arrived at Stanley Company yesterday, and the two parties formally started the first contact with Stanley's transfer of equity. Perhaps it was because of long-distance fatigue, or because he was not in good health, but Gao Dongfang, who was on the phone in the conference room, fell down due to back pain. Stanley turned pale with fright, quickly arranged a comfortable office for Gao Dongfang, and invited a physical masseur.

   "It's much better, thank you Mr. John for your concern!" Gao Dongfang's mouth twitched, his expression slightly unnatural, "The physical therapist you introduced is very skilled, and I don't feel any pain in my back at all."

  The sudden back spasm made Gao Dongfang miserable. Even after the treatment of the physiotherapist, Gao Dongfang only slightly relieved the pain. But of course he wouldn't tell John Mark these things, because he came here to negotiate, not to ask the other party to introduce a physical therapist.

   "Since this is the case, can we start negotiating?" Facing Gao Dongfang's pale face, John Mark knew that the other party was just saying polite words, but at this moment he was so anxious that he didn't care too much. You must know that in the past two days, another 40 billion U.S. dollars has evaporated from Stanley's company's books. This weekend, he must find a way to get a sum of money for Stanley, otherwise what will happen after the market opens next week? He couldn't imagine it.

   "Of course!"

   It was a blessing in disguise that because of Gao Dongfang’s back spasm, Huatou’s people had a night to review the information provided by Stanley, which virtually increased their bargaining chips with Stanley.

"A credit authorization of US$50 billion, and an equity acquisition of no more than US$5 billion, this is our condition!" In the negotiation room, Gao Dongfang's team reported a figure that shocked Stanley, "Of course, this is our preliminary agreement. The conditions offered, and other conditions can be discussed again, we hope to own 40% of Stanley’s equity.”

  Even though he was already prepared to be robbed, John Mark was still shocked by this figure, "If you want to own 40% of the equity for 5 billion dollars, this... How is this possible?"

   Even based on the current market value, 40% of Stanley's shares are by no means as cheap as $5 billion. But because of the $50 billion line of credit, the whole situation is different again. Because of the injection of such funds, the problem of the loss of liquidity faced by the entire Stanley was easily solved.

"We have carefully studied Stanley's financial statements. Although it is not comprehensive, we still found something different from the public announcement." Gao Dong explained expressionlessly, "According to what you have preached before, 12% of the assets were lost. However, after our overnight review, we found that this number is not particularly accurate. According to our preliminary audit, this number should be between 15% and 20%, which is far more than our expectations.”

   "Let's think about this number!" John Mark's face darkened. He knew that the other party was taking advantage of the fire, but for the current Stanley, there were not many choices they could face.

  The meeting could not go on any longer. The two sides left only low-level employees to communicate, while the high-level employees hid in another place to discuss countermeasures.

  "This condition is difficult for us to accept. They are robbing, which is a crime!"

In a closed office, a group of Stanley executives were discussing the conditions offered by Huatou, and the chief financial officer, Colm Kelleher, was furious, "These guys are not reliable at all, just like Wachovia Bank. There's no sincerity."

  Like him, the other senior executives present also looked angry. It's no wonder they are so dissatisfied, because according to the current Huatou's quotation, most of them will lose more than half of their value, which is obviously unsatisfactory.

"Relax, my friend!" John Mark had to stand up to comfort everyone's emotions, "They actually used this offer as an excuse to negotiate. Asking prices and paying back the money on the spot, it has always been like this, we still have a chance to reach a deal Agreement."

   "What about our bottom line?" Dick Marshall asked. He is one of the co-heads of the global M&A department, and as one of the heads of the equity sale, he has a great say.

"Selling at market value, or selling at a certain premium, this must not change!" John Mark said firmly, "Huaxia people intend to bundle credit and equity together, so we have to separate the two. In fact, 40% If we can sell this part of the equity at the normal price, maybe we don’t need so much capital credit at all. At present, all we can do is to stabilize the Huaxia people first, and then in the market Look for possible credit."

"If we can find it, we will take the initiative in negotiating with them. Of course, we must have a plan B, that is, accept the offer from the Huaxia people if the search fails. Although so far, there is still no There is a lot of money, but we have to recognize that next week, or Monday, or Friday, our troubles are going to explode. So we have to make choices before this last grace period."

John Mark has a clear view of the situation. He knows that under the current market environment, it is simply unrealistic to find an institution that can raise $10 billion or more. It would be irrational for one of the institutions with so much money to give up such a buyer easily, even if the offer given by the other party is very unreasonable. But by this time, there were not many options left for them.

  After persuading many directors, John Mark took out the phone from his pocket and dialed Geithner's number in front of everyone.

   "Timothy, I'm John, John of Stanley." He greeted, "I believe you already know that we are negotiating with the Huaxia people, and hope that they can help us when necessary."

"Yes, I already know!" Geithner was very elated, and he was naturally happy to see the institutions save themselves, "John, I heard that your situation is not good, is it like this? How about it, can you still support yourself?" how long?"

"It can last for a while, but it won't be too long. You know, we are in trouble, quite a lot of trouble." John Mark shook his head and sighed, "Timothy, now Huatou has opened a Very harsh conditions, this number is unacceptable for us. I wonder if the government can do something to get us out of the current very unfavorable negotiation situation?"

   "What can we do?" Geithner's tone became serious, "If there is anything we can do, please don't hesitate to tell us as soon as possible."

"That's right!" John Mark was overjoyed when he heard the words, "Now Huatou wants to bundle equity acquisition and capital credit together for negotiation, so their price is kept very low. In order to get rid of the current unfavorable situation, I think Please ask the Federal Reserve or the Treasury Department to help us find a credit line with a considerable amount in the market, so that our shares can be sold at a higher price."

"How big a credit line?" Geithner asked, "Well, I'll call Citigroup and **** to see if they are interested in you. Or if they can provide you with a certain degree of financial assistance , I'll have them call you."

   "It would be great if this could be done." John Mark was overjoyed and thanked again and again, "Timothy, thank you very much for lending a helping hand at this time, we will remember this kindness."

  After hanging up the phone, Geithner silently took out a piece of paper and solemnly wrote on it: "Stanley, Citigroup, ****." After thinking and thinking, he added "Huatou". He stared blankly at these words for a long while, and then solemnly added a few big words "Defend Stanley" next to them!

Thanks to the book friends James Wukong, zwhaaa, let me think about it, Shihuangtian, oh my god, it’s really difficult to name it, the **** of kalm, the wind waiting to berth, the gambler is not me, Zhou Shao, guardian 1, etc. Many book friends voted To monthly pass! Thank you book friend Xiao Qi for another reward for the miracle of civilization! Seeing so much support from everyone, the author is very grateful. Some time ago I was exhausted physically and mentally from being busy, and I have been sick for the past few days... This month's update is really too weak, I am very sorry everyone, I just hope that I can get better as soon as possible, and strive for a stable update~

  (end of this chapter)