Chapter 764 Large Financing

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The primary day’s assembly did not final lengthy. ?www?w?. ?Guo Shouyun solely briefly talked in regards to the merger plan of Phoenix and Merrill, the longer term route of discovery, and a easy valuation methodology. The true negotiation will solely be mentioned intimately after the representatives of the varied consortiums have learn the detailed info on Phoenix and Merrill.

After all, for 2 large monetary firms with large belongings of US$2.5 trillion and a whole bunch of 1000’s of paperwork concerned, it will likely be an enormous workload to investigate them totally inside two days. Fortuitously, each consortium consultant who got here right here introduced sufficient entourage. Everybody labored extra time. Lastly, after two days, that they had an in depth understanding of Phoenix and Merrill Lynch’s working information and monetary state of affairs.

What follows is a cumbersome dialogue that’s virtually as fierce because the haggling of the uncles and aunts within the vegetable market. Threats, inducements and buck-passing aren’t sufficient for outsiders.

After three days of entanglement, Morgan Household Fund, Roosevelt Household Fund, Bush Household Fund, Kennedy Household Fund, Goldman Sachs, Royal Financial institution of Scotland, kkr, Morgan Stanley, Bain Capital, Bear Stearns, Blackstone Group, Carlyle Group, after which Along with Bruce Fund, Phoenix Financial institution and Merrill Lynch, representatives of the fifteen events signed their names on the ultimate settlement.

In accordance with the content material of the contract: Merrill’s shareholders will convert their very own shares into Phoenix Merrill’s new shares on a three-for-one-for-one foundation; whereas Phoenix Financial institution will convert their very own shares into Phoenix Merrill on a three-for-two foundation. of recent shares.

Which means Guo Shouyun’s 47.3% of Merrill’s shares held by Bruce Fund will probably be transformed into 15.77% of Phoenix Merrill’s new shares. His 67.8% stake in Phoenix Financial institution will probably be transformed into 42.94% of recent Phoenix Merrill Lynch shares. He nonetheless holds a controlling stake within the firm, holding a complete of 58.7% of Phoenix Merrill’s shares.

The following step is financing.

After negotiation, the representatives of the fifteen events agreed that the essential provide of Phoenix Merrill Lynch was US$190 billion! Morgan Household Fund, Roosevelt Household Fund, Bush Household Fund, Kennedy Household Fund, Goldman Sachs, Royal Financial institution of Scotland, kkr, Morgan Stanley, Bain Capital, Bear Stearns, Blackstone Group, Carlyle Group, 13 events acquired Phoenix for $75 billion 28.3% of Merrill Lynch.

At the moment, we will see the hole within the power of the consortiums of all events. It must be mentioned that the Morgan household, a consortium that has been rooted within the American monetary trade for a whole bunch of years, is de facto sturdy. They invested 12 billion US {dollars} to get a 4.53% stake in Phoenix Merrill Lynch. Some Merrill Lynch shares, with a 6.47% stake, make the Morgan household fund the second largest holding establishment after the Bruce fund.

After this dilution, Guo Shouyun’s shareholding in Phoenix Merrill was additionally enormously lowered, and at last settled at 42.09%!

Nonetheless, that is additionally consistent with his function. If he continues to regulate Phoenix Merrill, I’m afraid that the hat of monopoly will nonetheless be tough to take away.

After speaking in regards to the enterprise, it’s pure to have a celebration dinner! Guo Shouyun, the protagonist, can be the middle of the dialog.

“Bruce, when will Phoenix Merrill be formally listed?”

requested Morgan Stanley CEO Walker Fairbank.

“If the merger goes nicely, I plan to formally launch the itemizing of Phoenix Merrill in October within the second half of the 12 months.”

“What in regards to the underwriters?”

“Walker, we’re the second largest funding financial institution on Wall Avenue!” Guo Shouyun laughed.

“As a sprawling entity with an estimated market cap of over $270 billion, two underwriters aren’t many!”

“The 2 underwriters are actually appropriate, however I believe we’re extra appropriate for Goldman Sachs!” Blankfein came to visit with a glass of wine.

“Clean, Goldman Sachs is behind us in securities underwriting!”

“Walker, Goldman’s shoppers are rich folks, they’ve stronger funding potential, and the flexibility to determine good shares. High quality shares like Phoenix Merrill Lynch are the most well-liked.”

Goldman Sachs has at all times been a widely known ‘white shoe’ firm on Wall Avenue. Though Merrill Lynch led the ‘Wall Avenue to Most important Avenue’ motion, making funding not a toy for the wealthy, Goldman Sachs, which insists on the partnership system, has at all times been a high-end participant on Wall Avenue. , they aren’t like Merrill Lynch, they’re among the many greatest in wealth administration and have large belongings. Nonetheless, he used his connections within the higher class to acquire wealthy returns by way of high-risk transactions.

Among the many high 5 funding banks on Wall Avenue, essentially the most crafty participant is Goldman Sachs!

“You two, do not need to struggle. Phoenix Merrill’s listed underwriters, aside from ourselves, won’t have any exceptions!” Guo Shouyun mentioned.

“Bruce, what number of shares are you going to take out to lift cash?”

Blankfein additionally modified the topic.

“10%!”

“I am extra curious in regards to the $75 billion in financing, what’s going to Phoenix Merrill Lynch do?” Walker Fairbank requested.

“Phoenix Merrill Lynch has numerous companies. Though the US$75 billion is large, it isn’t an enormous deal. Nonetheless, the particular distribution plan nonetheless must be mentioned and determined by the administration!”

“Bruce, based mostly on the data I’ve seen from Phoenix Merrill Lynch, you appear to be lowering your non-public fairness holdings and investing in several properties?” Blankfein requested.

Guo Shouyun was a bit of stunned by this man’s carefulness, and nodded after briefly enthusiastic about it.

“Why? Now all monetary establishments know that actual property by-product bonds are essentially the most worthwhile enterprise!”

“Merrill Lynch’s funding portfolio has a big share of various yields and by-product bonds, and the danger publicity can be too excessive. I have to stability it! As for the discount of personal fairness, we simply solid a large web earlier than and develop into The present focus is on fishing. The truth is, Phoenix Merrill Lynch’s general funding in non-public fairness has not modified, however the funding targets are extra concentrated than earlier than.” Guo Shouyun mentioned.

“Key investments are good, however aren’t you afraid of shedding cash?”

“So long as you do an excellent job of investigation prematurely and preserve abreast of the traits of those firms, except there’s a black swan occasion, the opportunity of loss may be very small.” After a pause, “Apart from, even if you happen to put money into treasury bonds, there could also be losses, proper?!”

Blankfein nodded and raised his glass with a smile!

“cheers!”

“cheers!”

…

“increase…!”

The large motion confirmed the proprietor’s anger.

“Rattling Goldman Sachs, **** Bear Stearns, they dare to betray us!” Steven Liping, the fiery CEO of Halliburton Vitality, slapped the desk angrily.

Aside from him, all of the folks in the entire room who participated within the alliance towards Bruce Guo regarded dangerous!

The betrayals of Goldman Sachs and Bear Stearns have been a heavy blow to them. Mockingly, if the 2 hadn’t withdrawn voluntarily, they would not have identified about it.

“Anger is meaningless, the secret’s to discover a method to cope with it!” William Schiff mentioned solemnly.

“What approach? Are we going to chase these two **** again?”

“After all it is to not get again. It is methods to cope with the difficulties that include it. Goldman Sachs and Bear Stearns’ betrayals are undoubtedly not with out causes. Since Bruce Guo is keen to spend some huge cash to win over them, he’s naturally keen to win over others. Befriending non-public fairness establishments comparable to Carlyle and Blackstone, with the assist of the Roosevelt household behind it, and now with Goldman Sachs and Bear Stearns, this power has erupted, not weaker than us, and even stronger than us!”

“The hot button is to search out out what means Bruce Guo used to win over Goldman Sachs and Bear Stearns? Other than them, which different consortiums have been attracted by him?” Citi CEO Cram Pandit frowned.

“With the crafty and greed of Goldman Sachs and Bear Stearns, coupled with the established order of Bruce Guo. The most probably factor to show their backs on us is the unique inventory of the brand new firm after the merger of Phoenix and Merrill! And I obtained information that Goldman Sachs, Bell Stern’s enterprise jet had been to San Francisco per week in the past,” mentioned Barclays Capital CEO Jeremy Searle.

“William, have not your folks been gazing Bruce Guo? Have not there been any priceless discoveries?” Jeremy Dyer requested.

“Bruce Guo may be very cautious. Furthermore, the extent of vigilance within the Hanshan Courtyard may be very excessive, and the automobiles passing by don’t have any distinctive indicators. Though we monitored the periphery, we didn’t discover something.” William Schiff shook his head.

The stalking and surveillance routine is completely regular in America, the place non-public detectives abound. However sadly, because the accident of Jasmine Bevin, Guo Shouyun has hooked up nice significance to the safety of his residence and the office he frequents. Not to mention a non-public detective, even if you happen to’re a CIA agent, do not even are available in unscathed.

After greater than 5 years, a whole bunch of thousands and thousands of {dollars} aren’t in useless. The members of the three bases, Rudy Muller, Deng Feng, and Hualei, have been coaching day by day.

“Jingle Bell…!”

Simply then, William Schiff’s telephone rang abruptly.

Having a look on the caller ID, William’s face modified barely, and after making an apologetic look to everybody, he turned and walked out of the convention room.

“Mrs. Snow, what is the matter with calling me…!”

He was interrupted earlier than he may end talking.

“Mr. Schiff, I am afraid I am unable to proceed what I promised you final time!”

“Why? Did not the antitrust investigation start?” William Schiff rapidly requested That is proper. However this morning, Mr. President spoke to me personally. And repeatedly defined that the merger of Phoenix and Merrill mustn’t contain a monopoly, the 2 sides are simply abnormal enterprise mergers and acquisitions! “

“president?!”

“Sure, the president has intervened! Clearly, your opponent has begun to organize to counterattack, and has a bonus from the start!” Connelly mentioned solemnly.

“Mrs. Snow, in accordance with the structure, members of the USTC are politically impartial. Even the president can not immediately intrude along with your place!”

“Mr. Schiff, that is true. However we do not exist independently. We have now households, we’ve kinfolk, we’ve mates. We’d like to consider them too. Additionally, the remainder of the commerce committee thinks the merger of Phoenix and Merrill is regular. enterprise transactions. So even when I nonetheless assist your technique, it won’t change the truth that the Commerce Fee withdraws its antitrust investigation into the ‘Phoenix and Merrill Lynch merger’!”