Chapter 739 Voting Rights

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This time Guo Shouyun instantly took out the Merrill Lynch shares he owned.

“There appears to be solely 41.7% right here.”

Previous Morgan requested the identical query as Ned Johnson. And Guo Shouyun additionally got here up with the identical reply.

“We simply acquired 5.4% of Merrill’s shares held by Constancy Fund, however the time is just too brief, and the inventory certificates has not but been obtained.” Guo Shouyun mentioned calmly.

He had already made up his thoughts that if the Morgan household’s phrases have been too excessive, he would go and do a take care of Constancy. Select one of many two, there’s all the time one which fits you. Due to this fact, he isn’t afraid to reveal his trump card.

his expression, previous Morgan, regardless of his scheming, didn’t see any favorable components for this negotiation.

“If the deal, what is going to the Morgan household get?” After a second of contemplation, the previous Morgan didn’t examine the problem of fairness. In his view, 41.7% is already an astonishing determine. On this foundation, so long as you’re keen to spend cash, it’s not troublesome to get a controlling stake in Merrill Lynch. Due to this fact, whether or not 5.4% of Constancy Fund’s shares are actually in Guo Shouyun’s palms isn’t necessary to the previous Morgan.

“I’ll push for the Phoenix-Merrill Lynch merger. If Mr. Morgan is keen to assist with this, you may get not more than 20 % of the unique inventory within the new firm.”

Previous Morgan squinted his eyes, this temptation is de facto large enough! With the respective property of Phoenix Financial institution and Merrill Lynch, as soon as the 2 sides merge, they may inevitably surpass Citigroup and turn into the biggest financial institution in the US. Definitely the biggest financial institution on the earth. If you may get 20% of the unique shares of the financial institution, and when it goes public, the Morgan household can get billions of {dollars} in returns, even tens of billions of {dollars}.

After all, the problem will likely be terribly wonderful. Not less than these opponents, together with Citi, Financial institution of America, ****, don’t wish to see a giant man climb on their heads.

“Mr. Guo’s urge for food remains to be as stunning as earlier than. Nevertheless, if you wish to promote the merger of Phoenix and Merrill, you and I’ll not have the ability to succeed!”

“After all, so I plan to repeat the story of Unocal’s financing after the profitable acquisition of Merrill.”

Listening to this, a number of distinguished names such because the Bush household, the Roosevelt household, the Kennedy household, the Blackstone Group, and the CapitaLand Group appeared within the thoughts of the previous Morgan.

Should you add Morgan and Guo Shouyun’s personal affect, it’s certainly promising to advertise the merger of Phoenix and Merrill Lynch.

“You pulled so many individuals to take a position, and promised Morgan at the least 20% of the unique inventory. What? You do not pursue controlling the Phoenix Financial institution?”

Guo Shouyun shook his head.

“Phoenix now has about $700 billion in property and Merrill Lynch has $1.85 trillion in property. If the 2 merged, the brand new Phoenix Merrill Lynch would have a mixed complete of $2.55 trillion, based on Merrill and Phoenix’s 2004 stability sheets. Property, 120 billion core capital, 80 billion US {dollars} in complete income, and 15 billion US {dollars} in internet revenue, surpassing Citigroup and changing into the world’s largest complete monetary establishment. Such an enormous monetary establishment is destined to turn into non-public property. In any other case, even when we’re all collectively With power, Congress is not going to approve the Merrill Lynch-Phoenix merger proposal.”

Previous Morgan nodded in appreciation, “It is uncommon that you’ve got such a transparent understanding.”

Guo Shouyun smiled barely. He gave up absolutely the controlling stake in Phoenix Merrill Lynch Financial institution. Though there are components to scale back the obstacles arrange by Congress, it’s extra for the subprime mortgage disaster three years later.

On this monetary disaster that began on Wall Road and unfold to the world, even Phoenix Merrill Lynch did not lose a lot on subprime bonds. But in addition due to the inventory market crash, the inventory value will fall sharply. That is decided by the final surroundings, not Guo Shouyun personally can change.

Due to this fact, underneath this systemic danger, the extra Phoenix Merrill Lynch shares are held, the larger the loss. Due to this fact, one of the best ways is to carry a certain quantity of shares, after which get greater than half of the voting rights to make sure management of the corporate. Wait till the worst of the financial disaster to enter the market and purchase the dip.

“Though I will not ask for absolute management, I hope that I can management a minimum of 35% of the shares and have at the least 51% of the voting rights.” Guo Shouyun mentioned.

“That is no drawback for me. I consider different folks will agree. In spite of everything, your administration of Phoenix previously 5 years has been sufficient to replicate your monetary expertise and enterprise expertise far past peculiar folks.”

“Your affirmation is the best praise to me!”

After the previous Morgan smiled, “After the merger, when do you intend to relist Phoenix Merrill Lynch?”

“If the merger goes effectively, I want a couple of 12 months for inside enterprise integration and personnel changes. So the center of subsequent 12 months would be the proper time to go public!”

After nodding his head in settlement, “Since it’s the merger of Merrill Lynch and Phoenix, then there is no such thing as a have to promote the 5.83% of Merrill Lynch shares held by the Morgan household fund to you. I can write a license settlement to switch this a part of the shares. The voting rights are licensed on your use.”

Guo Shouyun briefly considered it after which nodded So long as he has greater than 50% of the voting rights within the inventory, he can fully management Merrill Lynch. As for whether or not the precise inventory is in his personal palms, it’s secondary. .

Now that the settlement was reached, Morgan and Guo Shouyun quickly signed a one-year fairness administration switch settlement.

Guo Shouyun breathed a sigh of reduction when each events signed and made the settlement really authorized. With this 5.83% authorization, the voting shares he owns attain 47.53%. So long as 2.48% of Merrill Lynch shares are acquired from the secondary market, absolutely the controlling stake of Merrill Lynch might be fully grasped. Victory was in his palms.

Merrill Lynch’s present complete share capital is 1.517 billion US {dollars}, 2.48% of the shares are 37.63 million shares. Merrill Lynch’s buying and selling quantity in at some point is shut to twenty million shares, and Guo Shouyun can get this a part of the fairness from the secondary market inside three days at most, however not more than 4 days.

In comparison with his velocity, Stan O’Neal needs to purchase again the inventory first to get the approval of the board, after which to lift funds. It’s going to take at the least two to 3 days for him to actually begin working. Throughout this time, Guo Shouyun had already obtained the fairness he wished.

Nevertheless, do not be afraid of ten thousand simply in case. Whether or not it’s the blessing of Centennial Merrill, or Stan O’Neill’s private connections on Wall Road, he can use exterior funds to compete with Guo Shouyun for the fairness of Merrill. In case of any white knight, Guo Shouyun’s acquisition of Merrill Lynch might fail. Though this risk could be very small, he cannot ignore it.

Due to this fact, after getting the authorization of Previous Morgan, Guo Shouyun returned to the lodge continuous. However he didn’t relaxation, however took Wang Jue and Wu Xiaojing to take a look at, and left New York quietly.

After all, as a substitute of going again to San Francisco, he got here to Washington once more.

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