America's Road to Wealth

Chapter 339 Acquisition of American Express

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

Abel's acquisition of American Express has officially turned into a hostile takeover!
Black knight!

Barbarians at the door!

Kenneth Chenault had convened privately an internal meeting in support of him, only to be disappointed.

But since Abel has already made his attitude clear.

Except for 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 shareholders meeting will be held on November 11th.

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

Even if no representatives were sent, American Express was supposed to prepare a conference call for them.

That is to say, join the meeting from a distance in the phone mode.

Those five institutions also participated in the shareholders meeting.

Their verbal agreement with 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 American Express Company participated, and all senior executives had gathered.

Kenneth Chenault knew this was his last chance.

Mr. CEO worked very hard, "Everyone, I hope that all shareholders can remain rational. Even if the stock is to be sold, the purchase price of $25 is not the final price. Believe me, our stock price has reached $160 at the highest."

New York City, Manhattan.

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

This is the headquarters of American Express in New York.

In the huge meeting room, more than 100 members of the board of directors, shareholders, and shareholder representatives gathered together.

Kenneth Chenault spoke 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. It's just that this part of the funds has not come back to avoid being robbed by the tax bureau."

"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 11, when Kenneth happened to be in Seattle.

He rushed back to New York immediately, wanting to hold a private meeting with those shareholders who had 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 and with the support of the board of directors, he initiated the shareholders meeting.

This time, those shareholders could not refuse, because not participating would be regarded as giving up their voting rights.

In this general meeting of shareholders, apart from Abel, who initiated the general tender offer, he was unable to attend due to relevant acquisition laws.

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

The problem is that it took Kenneth two days to call this shareholder meeting.

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

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

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 heartbroken.

Because at this time, the stock of American Express has become the most sought-after stock in 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's side 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 [-] 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 fight back. 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 ultimate income required for the acquisition!"

As soon as Kenneth Chenault's words fell, it aroused doubts and vetoes.

"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 oppose 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, and they don't care who helps them control the company.

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

Listen to the shareholder backlash.

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

Ruined.

To be treated 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."

Said the shareholder representative of Fisher Asset Management Group.

As soon as these words came out, the originally noisy discussions 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.

The most toxic solution was rejected, and the other solution was to resign collectively and ruin the company. Kenneth Chenault knew that these people probably would not support it.

Anyway, it is right not to let their interests be damaged.

In desperation, Kenneth Chenault could only say:

"Well, first of all, 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 target for the 2002 fiscal year, hoping to make Abel Smith retreat from 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's 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."

The question raised by some shareholders is more realistic——

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

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

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

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

It is impossible to get shareholders to inject capital, the economic situation is not good now, 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 of directors, but it is not so easy to borrow 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 do not 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 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 [-] is not over yet, and the war is still going on. Can it really be completed?"

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

These bastards really only think about how to maximize their own interests.

Kenneth Chenault felt so tired that he simply said——

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

In any case, 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 there and do nothing.

"I agree!"

"I have no opinion!"

"You can try!"

"."

Facing these proposals from Kenneth Chenault.

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

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

Then they can 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 voided.

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 of Abel Smith.

11 month 9 day.

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

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

For example, 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 top executives of American Express have paid attention to overseas funds, he, a "barbarian", can also take this idea.

Kenny thought of using the money to buy back stock, which did not do much good for shareholders.

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

In the short term, his plan is more attractive.

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

Of course, it is impossible for Abel's own media not to end.

The New York Observer claimed—

[A number of American Express partners said they are optimistic about Abel Smith’s acquisition of American Express]

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

[Affected by the acquisition, the share price of American Express continues to rise.] - "New York Post"

[Acquisition maniac makes another move, American 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] - "New York Times"

【.】

"Crack~"

Los Angeles, Beverly Hills.

The mansion at 812 North Bedford Road is next to the sunny outdoor swimming pool.

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

The American banking and financial media have been overwhelmed 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 Anne, and go to Santa Barbara to sleep with Ikana's girlfriends, or go to Beverly Hills to sleep with several other women of her own.

Such as Jessica, Scarlett, Liv and the 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, November in California was a little bit cooler.

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

This is no longer warm, but a hot batch.

Annie, who has no work today, plans to go for a swim.

By the way, teach Lulana Korshunova, the daughter of her personal cook and the niece of Jinna, 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.

All dressed in the three-point Abhiakiani, they looked delightful, like two mermaids.

As Lulana Korshunova grows.

Abel has already 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 make 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, without looking sideways, and handed a document to the boss.

"BOSS. We got another 1.3% stake. But the rise was too fast. After the Amex board of directors raised their confrontation decision. 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 scramble for funds. They are even crazier than us."

Abel understood.

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

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

Amex is already very high-quality, and its current position in the financial field is quite special.

Abel knows that he can no longer play the kind of flirty tricks 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.

Similar to Buffett, Buffett does not dare to play mouse positions openly, or short US 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.

It's still too young, and it's a little bit of a drag on George.

Abel thought helplessly.

"Tell Allen to increase the general tender offer price. Increase it 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."

Seeing 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 scrambling for funds crazily, raising the stock of American Express Company higher and higher.

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

Who told Abel to be so rich and 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 same tricks as 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 that they can eat whatever they want.

But there is no rush. Ever since changing the method, Abel knew that his acquisition of American Express could not 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 has already started to try to splash in the water.

A pair of long, slender white legs reflected a 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.

Anne is still easy to get along with.

"I'm not, I'm not a little frog, I..." The rookie swimmer drank the water immediately after opening his mouth in a hurry.

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 herself.I was about to call the female swimming coach who was ready at any time on the shore for help.

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

Then put her slender and slender on his back, 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."

Feeling Lulana's slender body on his back, Abel smiled and said to Anne, "This way we won't drown beginners 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.

Just now he saved himself again.

Therefore, Lulana was so bold that she couldn't help protesting:
"I'm not going to be drowned. Anne laughed at me just now, 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 also 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 is getting a little angry!
(End of this chapter)