Wall Street of the third generation chaebol

＜ The roar of monopoly. (2) >

Federal Steel’s headquarters in New York.

Restructuring Headquarters.

“Long time no see. Detroit.”

“President Gary. It’s been a long time since I’ve seen you.”

“I’m sorry as soon as I arrived, but I don’t think I’ll have time to unwind. Go up to the boss’s office right away.”

Albert Gary.

The president of Federal Steel was waiting for me at the entrance of Federal Steel’s New York headquarters.

I also heard about the approximation as it came.

“You mean Carnegie Steel has been thinking about selling it?”

“Yeah, we got a call to do a merger and acquisition. It seems that the pressure from our side is coming out.”

“Well. From the perspective of Carnegie Steel, the game of chicken would be burdensome.”

Carnegie Steel currently has almost no cash remaining.

If you play a game of chicken, there is only a bankruptcy or bailout ending.

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Of course, since the truce is in place, bailouts will be provided under relaxed conditions, but the dilution of the stake and the collapse of the value of the company cannot be prevented.

In fact, it’s more than Carnegie’s work.

This is because of the random mergers and acquisitions of Pittsburgh steel companies.

“Because it swallowed up even the bulky J&L Steel.”

“Looking at J&L, you say you’re quite big… You really are. Heh heh. It’s strange that you’ve devoured Pennsylvania’s third-largest steel company, so it’s rather strange that you have cash.”

Pennsylvania is the third largest steel company in the United States.

As I said before, Bethlehem, Carnegie, and J&L Steel were the top three in Pittsburgh.

“We are already producing 60% of US steel production. If Carnegie Steel is merged, it will be close to 90%.”

“That’s a problem.”

“It’s a huge problem.”

antitrust law.

Theodore Roosevelt was widening his eyes, wondering if a steel monster with a market share of 90% could be born.

‘I need to persuade Roosevelt, but there is no way?’

A way to persuade Roosevelt.

what would be

Come to think of it, there really wasn’t any.

“The sovereign wealth fund…”

The first thing that came to my mind was the sovereign wealth fund.

Duties and rights that Roosevelt handed over to me.

‘ Then said Roosevelt. Instead of running a sovereign wealth fund, I want them to create monopoly companies as much as they want.’

It seemed a little different, but the context was the same.

The monopoly was granted conditionally.

“I’ll think about it for a moment.”

“I know.”

Sovereign wealth fund, monopoly.

Why did Roosevelt mention sovereign wealth funds and monopolies at the same time? There’s something I’d like you to both mention.

But the answer came surprisingly easily.

‘It’s the stake.’

The percentage of ownership a sovereign wealth fund will have.

To be precise, they want ‘voting rights’. More precisely, they want the right to veto (rejection) to hold the reins of the monopoly.

Vito….

Is it a vitto?

“I just came up with a good idea.”

“What? Is there any way to convince Roosevelt?”

“Yeah, at the same time, it’s a way to dramatically reduce the takeover price of Carnegie Steel.”

Roosevelt dude.

I told you to use it freely, so you can run the sovereign wealth fund as you please.

However, there was only a conditional condition that the veto should be granted when there is a newly established monopoly company.

‘It can’t be avoided anyway. Since the operation of the sovereign wealth fund is half-compulsory, the sovereign wealth fund should be given the right to veto the newly established monopoly company.’

If you have to eat gyereuk anyway, it is right to go in the direction of reducing side effects as much as possible.

A teddy who puts conditions on a monopoly is much… much better than a teddy who blocks the monopoly.

Fortunately, I had a solution.

“We purchase all of our shares as a sovereign wealth fund and issue differential voting shares. Let’s take over them.”

“…Is that…is it possible?”

We only eat the extract of management rights.

I nodded.

“Yes, it is possible. Aren’t sovereign wealth funds still a state-owned fund that returns to the budget of the Ministry of Finance anyway? Besides, I have the right to operate. The conditions for differential voting rights can be freely set at the general shareholders’ meeting, so it is possible.”

My prediction was that Roosevelt took into account everything and gave me the right to manage the sovereign wealth fund.

‘Roosevelt’s goal is read.’

Perhaps, I want to have global economic hegemony by holding the voting rights of the global monopoly that I will establish.

‘It is the will to use me to make the United States an international economic powerhouse.’

Make America Great Again.

Roosevelt’s slogan.

Roosevelt realized that military options were not the only option.

‘In a nutshell, I’m going to put the spoon properly on my exclusive table.’

Even if I issue differential voting rights.

Sovereign wealth funds don’t really suffer.

The voting rights held by sovereign wealth funds still exist.

The right to veto (rejection) does not disappear.

However, with differential voting rights, common stock will become almost like preferred stock, but the requirement for a majority shareholder can still be satisfied.

‘There is no problem with profitability. Shares of the company that will become monopoly in the first place. Preferred stocks or voting stocks are reserved stocks that are booming.’

Sovereign wealth funds don’t lose money.

They get on my exclusive bus.

Instead, I can freely wield the sovereign wealth fund.

They use each other, are used, and create synergy.

Roosevelt got the plate right once.

“If new shares with differential voting rights are issued, the net asset value per share will drop for a while, but if you monopolize it anyway, the corporate value will rise again. No problem.”

“…Your way of thinking is irresistible.”

Gary stared blankly at me.

I lifted my index finger.

“Carnegie Steel will definitely take over.”

90% of US steel.

We will wield this heavy monopoly on the global steel market.

tell me to look all over

“But what about the acquisition of differential voting rights?”

“I do it by borrowing and buying (LBO) to save cash.”

“Leveraged purchases?”

borrowed purchases.

It is a method of acquiring a company’s assets to be purchased by borrowing it as collateral. In a nutshell, I’m going to take over you with your money as collateral.

sounds like a dog whistle

‘Cause I was like that at first

However, there is another method of mergers and acquisitions that does exist.

There’s a lot of controversy.

If I manage the sovereign wealth fund, it can be done more easily.

“Other assets are not really needed right now. There is no need to sell them as long as you pay them back because they are collateral anyway.”

Albert Gehry, pondering for a moment, exclaimed.

“What we need right now is cash, right?”

“Yes, the chicken game is a fight for money. Liquidated assets must be important. First, I cherish the cash I have as much as possible.”

money.

I need more money.

I picked a word in my head for a moment.

“I’m accumulating assets that can be liquidated right away through hedge funds and the Detroit Investment Bank. Basically, Japanese dividends alone are going to pour in hundreds of millions of dollars a year.”

“…What a madman. If we bring our souls together, won’t we get 10 billion dollars in cash and no debts?”

“It will be a little difficult after a few years, but it will come out similarly.”

10 billion dollars.

That’s roughly 1/20 of U.S. gross domestic product.

That’s the case with cash only.

President Gary looked at me blankly.

“…What is the value of assets that can be secured as collateral? Including leverage? If you pretend to be crazy and collect debt to your soul, how much alternative capital can you raise?”

Let’s say your total assets are roughly 10 times your cash.

Then $100 billion. It already accounts for half of U.S. gross domestic product.

What if leverage is added?

Even if you double your leverage, it’s one year’s worth of the US.

‘…is that true?’

Can you buy a year’s worth in the US?

Albert Gehry’s pupils shook violently.

I chuckled.

“I know what you’re thinking, but no.”

Not yet.

It was pretty close.

Wouldn’t most companies in the New York Stock Exchange be able to buy with cash headbutts?

That’s it.

“…..right?”

“Yeah, anyway, I’ve accumulated a lot of money, so there won’t be a problem. So…”

I smiled bitterly.

“Steel market, push it without hesitation.”

I’m the one who takes care of it.

***

Wall Street Journal.

New York headquarters.

“Federal Steel is making a major announcement today. I think we should send reporters to the Wall Street Journal as well.”

WSJ President’s Office.

At the desk’s report, Charles Dow jumped up.

“How long have you been working for the Wall Street Journal? Have you ever taken on a major job like this?”

“I was stuck at the desk right away as a career worker… it seems like a month has passed.”

“I see. So, this must be the first time this has happened.”

Dow had a gut feeling.

The fact that Detroit Morgan calls a ‘major announcement’ always followed by a hurricane-like aftermath.

He was preparing something to take over the world again.

Perhaps the desk in front of you has no memory of experiencing the overwhelming scale in front of you.

“You go too.”

“Yes? I’m a desk person. Editing is my role, so should I go to the field as well?”

“Uh, definitely go. I’m talking for you.”

It will be a sight of a lifetime.

I’ll probably say thanks to Dow when I go. As a journalist, there are times when that happens.

I feel like I’m sharing a moment that changes human history and I’m covering it.

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Once you feel that holy sensation, you will never forget it.

“Do you remember what the market share of Federal Steel was?”

“Yes, we are number one in the US steel industry, with roughly 60% market share.”

“Well, is that so?”

Federal Steel should not be considered only in the United States.

However, no one other than the parties involved knows how great Nippon Steel is, as it is still a privately held company and does not have an obligation to disclose.

Dow triggers intuition.

Perhaps the combination of Nippon Steel and US Federal Steel would be enough to chew the global steel market.

“I don’t know what you’re trying to do, but at least on the scale, it must be an international event. Maybe it’s radical enough to change the foreign policy of another country.”

“It’s crazy that a single company… influences the foreign policy of a country.”

“You know Detroit Morgan once you meet him. He’s great, but he’s missing one screw.”

“A screw?”

The biggest screw is missing.

“He doesn’t have the word ‘moderate’. The problem is, he’s an unbridled pony, and his abilities overwhelm him, and he becomes even more a monster. He’s crazy.”

crazy guy

What kind of abusive language came out of the quiet Dow CEO’s mouth. saw it for the first time

“…Anyway, what time did the press conference say today?”

“I have to leave now. Federal Steel gave me a little bit of time.”

“Maybe he wanted to make headlines in the Wall Street Journal today.”

But to the New York press, Detroit Morgan was already a VVIP.

No matter how tight it is, wouldn’t the headquarters organize a group of reporters and dispatch them right away?

Dow looked at the desk editor with a camera.

“Then let’s go. It’s like a press conference at Federal Steel’s New York headquarters.”

“It’s next door.”

“Uh, that’s the best thing the Wall Street Journal has. We’re a hedge fund subsidiary, so we’re close to other subsidiaries.”

Dow was silent for a moment.

“If you want a scoop, leave the reporters behind and run without looking back.

It is a subsidiary of a hedge fund, so it has a lot of money.

I was able to print out the extra-curricular newspapers and other presses in a matter of seconds.

***

Federal Steel’s New York headquarters.

press conference room.

“This is Detroit Morgan.”

Click click! Click click!

I stepped onto the podium of the press conference room as I was baptized with the cameras of the reporters. The press conference room was already crowded with reporters.

At the time, most of the New York media outlets were there, and there were also a few Washington media outlets.

However, most of them were New York offices of other local media outlets.

“Today, I sent a press release to you for an important announcement. You must have been confused by the unkind press release. I had no choice but to do it.”

President Albert Gehry was listening to my presentation from behind the podium.

“A shock is something that can only be called a shock if it is sudden.”

At my remarks, the press conference room began to roar.

None of the media outlets had any complaints about the press release. The disgruntled press did not even attend because they did not even know the importance of this.

Even more important was the word ‘shock’.

“In the US steel industry, huge steel players have been fighting fiercely like gladiators in the arena of the steel market. In iron ore areas such as Illinois, Minnesota, Great Lakes, Pennsylvania, New Jersey, and New York, steel companies have poured in.”

American railroad era.

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Of course, the steel used in the railroad will inevitably develop.

It is a steel product called industrial rice.

Since it could be used anywhere, steel developed exponentially in the United States during the Industrial Revolution.

“With the blood and sweat of business people who set their eyes on everyone to explore iron mines, desperately raise capital to build a steel mill, and grow a steel company, America has built a great iron and steel empire.”

U.S. steel production is the largest in the world.

There was a situation in which European-grade steel was pouring out only in one state.

“We devoured 60% of that.”

The steel market bisected with German steel.

If it is 60%, it means that Federal Steel is eating more than 50% of the international steel market.

But market share said there.

‘We are still negotiating with Carnegie, so we do not disclose whether Carnegie Steel will be merged or not.’

In martial arts, Moorim masters always hide 30% of their power. It still hides the dagger of Carnegie Steel.

“We, Federal Steel, declare a full-fledged low-cost competition as of today.”

I grabbed the podium.

He gripped it so tightly that it was crushed.

Reporters gradually pull their upper body forward. Your eyes start to twinkle.

“We, Federal Steel, are well prepared to ‘lost money’ to gain market share.”

Whoa.

I took a deep breath.

“So, let me tell you straight up.”

left-wing gaze.

The reporters stopped their pens and looked only at my mouth. I bit my lip bitterly.

“The low-cost competition will continue until the global steel companies. Or the alliance narrows to just ‘three’.”

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Only three.

The unrealistic remarks caught the reporters’ breath.

What did they hear now?

“I will push the price of steel until everyone is dead.”

“Come on, come on, hold on a second!”

Wall Street Journal.

A reporter, who appeared to be an editor, raised his hand urgently.

“Yes, you can ask.”

“You just said that your competitors are pushing prices until they all die, but no matter what, there must be a time limit! How long is Federal Steel’s internal plan?”

The press conference room began to buzz.

Certainly the approximate duration was important. Other companies, as well as the US federal government and the State Department, were able to respond based on this.

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Of course, there is no obligation to disclose.

But the Wall Street Journal reporter had a gut feeling. Today’s Federal Steel held a press conference with momentum to open everything.

‘One year or two years? No, it could be as long as five years, wouldn’t it?’

at most 5 years.

Reporters in the conference room similarly began to predict the expected duration. The executives of other steel companies would think the same.

“That’s a good question.”

I smiled brightly.

“We, Federal Steel, will continue to compete at low prices until we see results. To this end, we…”

My lips are twisted.

“We have the capacity to survive for at least 10 to 30 years.”

“…!!!”

The press conference room was shocked.

bang-!

I hit the podium.

The shocked reporters’ eyes were now completely focused on me.

I, too, got caught up in that suffocating atmosphere and completely immersed myself in my role.

“First of all, we will push the price of steel ‘lightly’ to the break-even point.”

plus minus zero.

It is even the break-even point of ‘the monopoly that will control 90% of US steel’. When economies of scale are applied, our break-even point is formed at prices that are overwhelmingly lower than those of other companies.

Are there any steel companies bigger than us?

If not, everything else is a deficit.

“If you can’t make it financially, feel free to contact us. Federal Steel welcomes M&A proposals.”

I stared straight at each camera.

This was a clear warning.

Who hasn’t seen today’s shocking monopoly competition declaration?

And to whom this warning is directed, you yourself know best.

I smiled leisurely.

ground zero.

The chicken game in the steel market, which is about to go extinct, has just begun.

“Perhaps now is the only chance you’ll have to sell at my price.”

This novel was posted at https://readwn.com

Only three companies (alliances) will survive.

Two of them have already been decided.

German Steel Alliance (VST).

US Steel (USS) of the United States.

There are two options.

do you go bankrupt? Are you going through mergers and acquisitions?

The monopoly monster roared around the world.

‘This is the end of the declaration of war.’

All that’s left.

It was the reaction of the world and the White House to my chicken game.

***

that time.

Waldorf-Astoria Hotel.

“This is almost the first time since the credit law.”

Andrew Carnegie.

The American steel giant entered the Wildorf-Astoria secret meeting point.

Today, the merger and acquisition meeting of Carnegie Steel was secretly scheduled to be held.

“Albert Gary?”

“I will join you after the press conference is over.”

“I see. Please take good care of the meeting.”

Carnegie tapped Charles Schwab on the shoulder.

“Tomorrow, America, or the world, will be turned upside down.”

＜ The roar of monopoly. (2) > end