MTL - America’s Road To Wealth-v2 Chapter 337 Acquisition of American Express

  Chapter 337 Acquisition of American Express

   Abel's press spokesman, after announcing the acquisition offer for American Express.

  Abe’s acquisition of American Express has also officially turned into a hostile takeover!

  Black Knight!

   Barbarians outside the door!

  Kenneth Chenault privately called an internal meeting in support of him, which turned out to be a big disappointment for him.

  But since Abel has already made his attitude clear.

  In addition to the five major institutions that have made peace with Abel.

  It is impossible for other shareholders not to respond.

  For their own vital interests, in order to maximize profits.

  A real general meeting of shareholders will be held on November 8th.

  Most of the shareholders holding more than 0.1% of the shares sent people or representatives to participate.

   Even if no representative was sent, American Express was prepared for a conference call for them.

  Join this meeting from a distance in the phone mode.

  The five institutions also participated in this shareholders meeting.

  The verbal agreement between them and Abel was nothing more than a verbal agreement.

  If you really want to implement it, everything will be nothing until you see the benefits.

   At the site of the shareholders meeting, all members of the current board of directors of the entire Amex company participated, and the senior management has gathered.

  Kenneth Chenault knew this was his last chance.

  Mr. CEO worked extra hard, "Everyone, I hope all shareholders can stay rational. Even if you want to sell the stock, the purchase price of 25 US dollars is not the final price. Believe me, our stock price has reached 160 US dollars at the highest."

   New York City, Manhattan.

  The 35th floor of Tower Two, World Financial Center.

   This is the headquarters of American Express in New York.

  In the huge conference room, more than one hundred board members, shareholders, and shareholder representatives gathered together.

   Kenneth Chenault speaks eagerly:

   "Dear shareholders, although accepting Abel Smith's "hostile takeover" can make short-term profits, it is contrary to the long-term development of the company."

"America Express has made a lot of preparations after the downturn in the past few years. Our global economic business has established a series of human capital, high-level customer service network, debt relationship, etc., which are closely related to strategic stability. If these arrangements are adopted Interrupted by the short-term profit motive, it will definitely affect the overall development efficiency."

   "And our overseas business has always been profitable. The funds we store overseas can fully make up for the local losses. Just to avoid being robbed by the tax bureau, this part of the funds has not come back."

   "Our better future is ahead. The board of directors and the company's executives are confident that we can create significant added value for shareholders in the future, and we will welcome the next stage of profitable growth together!"

  Kenneth Chenault tried his best to persuade the major shareholders.

  He had to.

  Abel initiated the general tender offer on November 6th, when Kenneth happened to be in Seattle that day.

  He rushed back to New York immediately, wanting to hold a private meeting with those shareholders who originally supported him.

   But Kenneth was let go, and he knew the seriousness of the matter.

   On the same day, in the name of the CEO, with the support of the board of directors, he initiated the shareholders meeting.

  The shareholders could not refuse this time, because not participating would be considered as giving up their voting rights.

  This shareholders meeting, except for Abel, who initiated the general tender offer, could not attend because of the relevant acquisition laws.

  The other shareholders have come, and those who did not come mean that they voluntarily gave up their voting rights.

  The problem is calling this shareholder meeting, and it took Kenneth two days.

  In two days, many changes have taken place in the market.

  In the past two days, many holding institutions have begun to sell the shares of American Express.

  And these sold stocks are like being thrown into the black hole of the universe, and they are wiped out as soon as they appear.

  This black hole may be the acquisition team of Abe Smith, who holds a lot of cash in his hands.

  It may also be ordinary investors who want to fish in troubled waters, or those investment institutions who want to make some meat.

   When this happens, many people will be moved.

  Because at this time, the stock of American Express has become the most sought-after stock on the US stock market.

   It has risen to $25 a share yesterday, and it is now $28 a share after the market opened today.

  Although Abel Smith has not raised his overall tender offer price.

   But the entire market believes that this is only a matter of time.

   At this time, of course, it is better to grab more stocks.

   Facing the eager Kenneth Chenault, Jim Walton, who holds 1.5% of the shares, spoke.

   "Kenneth, what's your plan?"

  This Jim Walton is one of the sons of Sam Walton, the founder of the Wal-Mart supermarket.

  After the listing of Wal-Mart Supermarket, the Walton family has lost most of the control of Wal-Mart Group.

   But this has brought them a lot of wealth. Sam Walton's children are all billionaires, and all of them are in the top 20 of the Forbes US list.

  Before Abel appeared, their brothers and sisters combined, if they entered this list in the name of the Walton family, they would even be the richest family in the world without a doubt.

   After getting rich, the Walton family, like other wealthy families, made additional investments.

  As a high-quality Dow Jones industrial index stock, American Express is one of the main directions of Jim Walton's investment.

  Jim Walton has always been one of Kenneth Chenault's supporters.

   Seeing Jim Walton speak, Kenneth quickly said:

   "According to the rules of the US capital market, I think we can launch a "poison pill plan" to counterattack. A large number of targeted new shares will be issued to dilute the proportion of shares held by the other party, thereby increasing the capital cost and final income required for the acquisition!"

  As soon as Kenneth Chenault's words fell, there were voices of doubt and veto.

   "This plan doesn't work." Jim Walton was the first to question.

  “Once the poison pill counterattack is launched, the rating of American Express will be lowered, and the stock price will plummet. We will not bear this kind of loss!”

"I object!"

   "I am against this plan!"

   "Kenneth, calm down. This kind of plan is not good for anyone!"

  “.”

  All major shareholders, or representatives of major shareholders, as well as shareholders who participated in the meeting through conference calls, have clearly rejected Kenneth Chenault's idea.

  Kenneth knew that the most effective way to fight back was to be completely abolished by shareholders.

Benefit!

   Sure enough, in the eyes of these investors.

  Their respective interests are the most important. As for who helps them control the company, they don't care.

   Moreover, these people don't have much respect for their CEO.

   Listen to shareholder backlash.

  Kenneth Chenault and the board members, after making eye contact with each other, saw deep concern in each other's eyes.

Ruined.

   will be used as a scapegoat.

   "Kenneth, you should talk about other plans. I believe you have a better plan to fight back. If it is feasible, we will support you."

  The shareholder representative of Fisher Asset Management Group said.

  As soon as these words came out, the originally noisy discussion became quiet.

  The shareholders all looked at Kenneth Chenault at the head of the conference room.

   Each of them is waiting for a better plan from the other party, to see if they can maximize the interests of their shareholders.

  One of the most poisonous methods was rejected, and another method that the management resigned collectively and ruined the company. Kenneth Chenault knew that these people probably would not support it.

   Anyway, it is right not to damage their interests.

   In desperation, Kenneth Chenault could only say:

   "Okay, first, I'll be on the phone with Abe Smith, contest his offer, pull up the offer."

   "Then there are methods such as mobilizing funds, planning stock repurchases to increase the stock price, and substantially increasing the performance targets for the 2002 fiscal year, hoping to make Abel Smith quit in the face of difficulties."

  In order to protect himself from being fired after the acquisition of American Express, Kenneth Chenault can also be said to have exhausted all kinds of tricks.

   "I think it is feasible, this plan is good."

   "I support it. Kenneth just go ahead and do it, we believe in you."

  “$25 is absolutely impossible, and $30 is undervalued. Of course, $160 is unrealistic. I think it should be at least $50, or $45.”

  Some shareholders’ questions are more realistic—

   "Where does the repurchase fund come from? Is it mobilizing overseas funds? What about high taxes?"

   American Express has no surplus funds in its home country, and if it had, the stock price would not have been kept so low all year round.

   To repurchase shares, of course capital is needed. When the stock price has been raised, more funds are needed.

  When the company itself does not have much capital, it either asks shareholders to inject capital, or borrows money from outsiders.

  It is impossible for shareholders to inject capital. Now the economic situation is sluggish, and Abel Smith is also a major shareholder.

  If shareholders are allowed to inject capital, Abel Smith also has the right to inject capital.

  Temporary borrowing is even more impossible. Abel Smith cannot participate in today's board meeting, but it is not so easy to borrow money during the period when the company is under a general tender offer.

  Then there is only one way left, the overseas funds of American Express.

  Like most multinational companies, because they don’t want to pay high taxes in the United States, most of the overseas funds of American Express are free.

  The shareholder who spoke just now was thinking about letting overseas funds flow back and using this part of the funds to buy back stocks.

  However, some shareholders also took this opportunity to speak: "Should we consider using some of the overseas cash for dividends?"

   "Significantly increase the performance target for fiscal year 2002. What if it cannot be completed? Who will be responsible? The aftermath of September 11 is not over yet, and the war is still going on. Can it really be completed?"

  Wuyang Wuyang's discussion made Kenneth Chenault and the members of the board of directors look solemn, and cursed in their hearts.

   These **** really think about how to maximize their own interests.

  Kenneth Chenault felt so tired, he simply said—

   "If all shareholders agree with our counterattack plan, then let's vote by show of hands now!"

  No matter what, make a counterattack plan early to deal with the barbarians outside the door smashing the door.

  This is the only way out for Kenneth Chenault and the top management.

   Even if you know you can't do it, you have to try it now.

   You can’t just sit and wait for death without doing anything.

"I agree!"

"I have no opinion!"

   "You can try it!"

  “.”

  Facing these plans spoken by Kenneth Chenault.

  Even the representatives of the five institutions that made peace with Abel in private also voted in favor.

  The reason is very simple, if these practices of Kenneth can raise the stock price.

  Then they can also benefit from it. Unless Aberken directly comes up with something that makes them excited, the two ends of the snake and mouse are the routine operations of these financial capitals.

  Before the contract is signed, any promises and verbal agreements are nothing but nonsense.

  This is the case with the five major institutions that Abel has already talked about, but it is not the case for Abel himself.

   Sometimes even a signed contract can be voided as soon as it is said to be void.

   In the end, there is only one thing that this world pays attention to - that is profit!

   With the support of all shareholders, the board of directors of American Express, headed by Kenneth Chenault, began to fight back against the acquisition by Abel Smith.

  November 9.

   Various financial and financial media in the United States, as well as some comprehensive and serious media.

  The front-page headlines, or sub-page headlines, were basically about Abe Smith's general offer to buy American Express.

  As the Wall Street Journal claimed—[In order to gain the support of major shareholders, Abel Smith promised to return overseas funds and pay cash to shareholders immediately. And in the next year, all profits of the company will be used as dividends. 】

   This is after Abel obtained from the organizations at both ends of the five snake rats the means of the board of directors of American Express that they disclosed.

  Abel's counterattack.

  Since the senior executives of American Express have paid attention to overseas funds, he, a "barbarian", can also make this idea.

  Kenny thought of using the money to buy back shares, which would not benefit shareholders much.

  Abel can take out the money directly and share it with everyone.

   In the short term, his proposal is more attractive.

  The inside story of the Wall Street Journal report was even directly disclosed by Abel.

  Abel's own media, of course, cannot fail to end.

  The New York Observer claimed—

  【Multiple partners of American Express said they are optimistic about Abel Smith’s acquisition of American Express】

  As Abel’s newspaper, of course it clearly stands on the side of the boss and shouts for the boss.

  【Affected by the acquisition, AMEX’s share price continues to rise.】——《New York Post》

  【Acquisition maniac makes another move, Express Bank is in trouble! ] - "Los Angeles Times".

[According to reliable sources, Kenneth Chenault called Abel Smith yesterday afternoon in order to defend the shareholder value of American Express. Promise to provide a 'breakup fee' as a guarantee. 】

  【However, Abel Smith does not seem to agree with Kenneth Chenault’s proposal. Although he agrees that the purchase price can be increased appropriately, he directly rejects the proposal for a breakup fee guarantee and has a tough attitude】——The New York Times

  【.】

   "啪~"

  Los Angeles, Beverly Hills.

  Mansion at No. 812 North Bedford Road, next to the sunny outdoor swimming pool.

  Abel threw the New York Times he had just finished reading on the table under the umbrella.

  The U.S. banking and financial media have been turned upside down by him in the past few days, and they are very lively.

   But his own life is still as stable as ever, maintaining a very normal rhythm.

  That is to sleep with Annie when it is time to sleep, and go to Santa Barbara to sleep with Ikana's best friend in the middle, or go to sleep with several other women near Beverly Hills.

   Such as Jessica, Scarlett, Liv and others.

   Then it’s time to eat and play.

   Like now, he is sitting under the umbrella, admiring the two mermaids, one big and one small, in the swimming pool.

  Last year, due to the La Niña climate, California was a little bit cooler in November.

  The weather is normal this year. At noon in November in California, the temperature remains around 30 degrees as usual.

   This is no longer warm, but a hot batch.

  Annie, who has no work today, plans to go swimming.

  By the way, she taught Lulana Korshunova, the daughter of her personal cook and the niece of Jin Na, her personal bodyguard, who just turned fourteen this year.

   "If you want to look like this, hold it here with both hands. Straighten your legs, yes, jump up, and slowly release your hands. Frog, remember to be like a frog!"

  An unprofessional swimming coach taught the young Lulana.

  They all wore the three-point Abi Akiani, looking pleasing to the eye, like two mermaids.

  As Lulana Korshunova gradually grows.

  Abel has determined that this little girl will be a great beauty in the future.

  He didn't know that this future is one of the young supermodels in the parallel time and space.

  Just looking at her young age, she is already tall and has long legs, a slender figure, and a beautiful appearance. Abel feels that she can rely on her body to eat—

  Don’t get it wrong, what Abel thinks is that she can rely on her good figure and good looks to earn a living in the entertainment or modeling circles.

   Instead of going to the red light district to eat.

  Just as Abel was admiring the big and small mermaids.

  David Jones came over, he didn't squint, and handed a document to the boss.

   "BOSS. We got another 1.3% of the shares. But the rise was too fast. After the American Express board of directors raised their decision to confront. Now the stock price is over 30 dollars."

  Abel nodded, without looking at the documents, and asked him directly: "How many shares do we have now?"

   "32.5%." David replied: "There are too many people who are reluctant to sell and grab funds. And they are crazier than us."

  Abel expressed his understanding.

  I launched a general tender offer on the 6th, and today is the 9th.

  There is no Sunday in the middle, so it is very normal for the stock price to rise.

  Who is called American Express, which is already very high-quality, and its current position in the financial field is also relatively special.

  Abel knows that he can no longer play that kind of showmanship like he did in Sampra Energy.

  This is the side effect of being the mainstay of American finance. For the sake of influence and fame, we can no longer mess around.

  It’s similar to Buffett, Buffett doesn’t dare to play mouse positions openly, or short U.S. stocks.

  Abel's current treatment in this regard is similar to that of Warren.

   It is estimated that the financiers on Wall Street and the United States at that time also wanted to put the same invisible shackles on him as Buffett.

  When the White House advertised itself, not only did they not oppose it, but they also strongly supported it.

   is still too young, and it has dragged George a little bit.

   Abel thought helplessly.

   "Tell Allen to increase the general tender offer. Increase to $35."

  Abel said: "Just follow our plan, there is no need to rush. I don't want to be taken advantage of, you understand?"

  David Jones smiled: "I understand, BOSS. I'll inform Alan right away."

   Watching David leaving, Abel shook his head.

  Hmph, those institutions and leeks, this time they are sure that they dare not play tricks like they did with Sampla Energy last time.

  All of them are crazily scrambling to raise funds, raising the stock of American Express Company higher and higher.

  Everyone wanted to scrape some minced meat and eat the skin of the richest man in the world who had never missed a shot.

   Who told Abel to be so rich, or the richest man in the world?

  Abel is indeed very rich, but he just doesn’t want to be taken advantage of, spend the wrong money, and let these guys taste the sweetness of himself.

   There is nothing wrong, because of the invisible shackles. I really can't play the showy tricks like last time.

   Unscrupulous methods cannot be used, but it does not mean that serious methods cannot be used by themselves!

  Abel decided to educate these institutions and leeks again this time.

  Let them know that even if Abel Smith wears shackles, in the financial field, even if it is just the "dead skin" and "crumbs" on his body.

   It's not something they can eat if they want.

   But there is no rush. Since changing the method, Abel knows that his acquisition of American Express cannot be accomplished overnight.

  According to his prediction, if all goes well, he will be able to become the owner of American Express within one month.

   As for completely controlling it, or even privatizing it, it will definitely be a project that lasts for several years.

  Thinking of this, Abel let go of his work.

  His attention came back to the big and small mermaids in the swimming pool.

  At this time, with the help of Anne, the young Lulana Korshunova had already started trying to jump in the water.

  A pair of slender and white long legs, reflecting charming brilliance in the sun.

  Abel stood up, he was only wearing a pair of swimming trunks, and walked into the swimming pool.

   "Haha~ Honey, come on! Look at Lulana, she swims like a little frog, hahaha~"

  Annie watched Abel go into the water, smiled and waved at him, pointing at Lulana to "laugh".

  Lulana is already familiar with Annie, and although she is generally a little maid, she is no longer afraid of Annie.

  Annie is still easy to get along with.

   "I'm not, I'm not a little frog, I am..." The rookie swimmer immediately drank the water as soon as he opened his mouth anxiously.

  Novices often feel nervous when they drink water when swimming, and nervousness is prone to problems.

  Lulana, who could barely swim a few meters, suddenly sank into the water in panic.

  Annie was taken aback, she couldn't swim well. I was about to call the female swimming coach who was ready at any time on the shore for help.

  But seeing Abel who went into the water, he had already swam through the water like a great white shark, and easily picked up Lulana in a few seconds.

  Put the slender **** his back again. The little girl who was rescued from drowning just now also subconsciously hugged Abel who had saved her tightly, hanging on him and refusing to get off.

   "I still feel like adding a shallow water area."

  Abel felt the slender body of Lulana on his back, and said to Anne with a smile: "This way, beginners will not be drowned at will in our swimming pool."

  Lulana is no longer as afraid of Abel as she was at the beginning.

   During this period of time, Abel has been living with Annie, looking amiable.

  He saved himself again just now.

  Lulana therefore had the courage to protest, and said:

   "I'm not going to drown. Annie just laughed at me and I got distracted."

  Annie saw Abel carrying Lulana on his back in the water. She was a little jealous at first, but she heard Lulana's voice of a girl who hadn't started to develop yet.

  Annie thought to herself, this is still a child, why should she be jealous?

  She smiled and said, "I agree, what if Lulana was drowned?"

   "I won't."

  Annie ignored Lulana's soft protest, and she snuggled in the water.

  After getting close to her boyfriend, Anne's beautiful eyebrows immediately raised.

   She looked at her boyfriend, her beautiful eyes widened.

This guy.

  Annie got a little angry!

  (end of this chapter)