Chapter 245 Internal Discussion

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"Have I read all the information I gave you?"

Guo Shouyun's words made the atmosphere in the car change instantly.

After everyone looked at each other, Rich Cowsy, chief risk officer of Pan Pacific Group, first said: "Boss, who is the author of this 'solution to the Enron dilemma'?"

"What's the matter?

"No, on the contrary, the feasibility is too high, and if you don't have a full understanding of Enron's internal predicament, and are familiar with its finances, people, markets, and all the inevitable factors of the company's development, you can't write such a detailed plan. But it is precisely because it is too detailed and feasible that it is curious!" Ricky Cowcy Road.

"The most important thing is that the relationship between the boss and Enron is now known to everyone, so you came up with such a plan to surprise everyone!" laughs Barbé Douglas, the company's non-executive director.

Of all the people present, he was the oldest. During this time, he has been using his connections in the U.S. energy industry to contribute to the mergers and acquisitions of Pan Pacific Group, and he has also used his influence among the former Pacific Power and Natural Gas employees to support Jonathan Weir's integration of the company, which has effectively ensured the stability of the company, so everyone respects him, including Guo Shouyun.

After his eyes quickly swept over everyone's faces, Guo Shouyun smiled.

"I will keep the author of this plan secret, and now we are discussing: if it is implemented according to the above content, how feasible is it based on your professionalism and industry experience?"

"I'll talk about it first!"

After seeing that everyone did not speak, Balbert Douglas said: "Because the content of the information is too large and complex, and the time is relatively short, if you talk about the whole solution, I can't give a very accurate answer at present." However, from the perspective of Enron International's dilemma solution alone, the feasibility is still very high, and the plan covers the politics, economy, culture, and estimation of the future ten-year development direction of the host country, combined with the speed model, Kelly optimization and other reasoning formulas, the success rate of Enron International's dilemma solution is more than 80%. ”

"But one thing, the success of the whole program is based on abundant financial support, Enron has a total asset value of nearly $20 billion, liabilities of $13.5 billion, and more than 60 percent of its assets are in deficit, especially for the Dabor project in India. Judging from the plan discussion, to revitalize these assets, at least $3 billion is needed to reinvest. And that's just Enron. If Enron's other assets are included, it may exceed $10 billion. The big question now is: is it worth investing such a high amount of money on the basis that the whole plan is feasible?!"

After listening and thinking for a while, Guo Shouyun nodded.

"Anything else?"

"That's the biggest problem I can think of right now, and if it can be solved, the rest will be of little importance to the implementation of the whole program!" Barbert Douglas shook his head.

"What about the others?" Guo Shouyun continued.

"Boss, I have some opinions on this plan!"

"Please!"

Rich Cowcy nodded, "As the company's chief risk officer, from my point of view, the risk of acquiring Enron is too great, and it is difficult to come up with a satisfactory result in terms of input and output. From an investment perspective, it is also difficult to draw a reassuring margin of safety from the combination of value investing theory and the Kelly model. So, from a security and risk perspective, I'm against this acquisition!"

"I agree with Richie. Chuck Berden, the company's chief human resources officer, echoed, "In the three months since the company was founded, we have acquired seven electric and gas companies at the same time, and we are still in contact with Southern Company, which ranks fifth among the national energy utilities, and the negotiations are going very well, once successful." If we don't pay equity, we're going to have to come up with at least $4.5 billion in cash and $3 billion in bank loans. Although I don't know how much capital the boss still has in his hands, I am afraid that after the completion of this acquisition, it will be difficult to afford the acquisition of Enron. Moreover, compared to Enron, Southern Company is obviously a more worthy acquisition, and their losses are not as serious as Enron!"

In the U.S. utility sector, the newly born Pan Pacific Energy Group is undoubtedly in first place with 18.38 million electricity users, 8.97 million natural gas users, 21,893 megawatts of installed capacity, 178,000 miles of natural gas distribution and retail pipelines, and total assets of $130 billion.

In second place is Duke Energy, which produces 65% of the electricity of Pan Pacific Group.

In third place is Ixron, which is equivalent to 51% of the Pan-Pacific in all indicators. In fourth place is Mindalini, which is equivalent to about 46.7% of the Pacific Ocean. In fifth place is the Southern Company, which is roughly equivalent to 40% of the Pan Pacific Group.

"If I'm not mistaken, Southern's main customers are in the seven southern states of Georgia, Mississippi, Alabama, and Louisiana, and they are not the hardest hit by California's energy crisis. They agreed to sell the company to us?" Guo Shouyun said with a slight frown.

When Barbé Douglas sent him the M&A information of the Southern Company, Guo Shouyun took a look at it and didn't pay much attention to it. At the time, he didn't think the success of the acquisition was too high. At the moment, it seems that everything is going pretty well.

Barbert Douglas, who has the most say on this matter, said: "The Southern Company has 12 subsidiaries, in addition to the production, distribution and service of electricity and gas, there are two companies, Southern Telecom and Southern Telephone. After the outbreak of the NASDAQ crisis, technology, telecommunications, and Internet companies were in a depression, and the telecom companies under the Southern Company also suffered heavy losses. Therefore, the shareholders of the company have the vision of selling the company's shares to stop the loss, especially if we buy it for cash. On another note, Goldman Sachs, Morgan, Citigroup, and Bank of America are all actively brokering the deal, and while their unusual enthusiasm raises questions about the motives behind it, there is no doubt that their inclusion made the acquisition easier. ”

Guo Shouyun's eyes narrowed slightly. His VAM agreements with Goldman Sachs, Seymour, Citigroup, and Bank of America were kept secret, and it was normal for Barbe Douglas not to know about them. However, Guo Shouyun, who has a clear heart, is like a palm on his hand for Goldman Sachs and Seymour's motives. In the same way, they must have guessed what they were thinking.

To put it simply, everyone is consuming, Goldman Sachs and Morgan hope to use more unprofitable, or even loss-making companies to consume the funds in Guo Shouyun's hands. Guo Shouyun hopes to take advantage of the rare opportunity to make a big merger and acquisition through their help, and establish Pan Pacific Group's position in the US energy market in one fell swoop.

If in the end, Guo Shouyun keeps the bottom limit of '$2 billion loss in half a year', then he will win this 'war'. Correspondingly, Goldman Sachs, JPMorgan, Citigroup and Bank of America did not suffer financial losses, but the cost of time and energy was also a loss. Conversely, if Guo Shouyun does not keep the floor, then he will lose the Pacific Energy Group. Goldman Sachs, JPMorgan, Citigroup and Bank of America will make gains dozens of times as a result. That's the beauty of betting.

Of course, this bet seems to be a little unfair to Guo Shouyun, and he has significantly more chips on the table. Correspondingly, the harvest is not too big. However, this is also based on the difference in strength between the two sides. Goldman Sachs, Seymour, Citigroup and Bank of America are much stronger than him.

If you want to borrow strength from the strong, you naturally have to pay a big price, otherwise why would they help you?!

"Regardless of the ideas of Goldman Sachs, JPMorgan, Citigroup and Bank of America, our established strategy of acquiring Southern Bank remains unchanged, and everything is going on as usual on the basis of strict scrutiny!" After the final word, Guo Shouyun continued, "The next question is Enron, I want you to put aside your financial concerns and discuss in detail with the top management of Phoenix about the feasibility of the whole plan, and what price should we pay if we acquire it?"

"Understood!"

The crowd nodded.

"Boss, we're here!" Wendy reminded.

"Let's go, let's get off!"

After bringing the top management of Pan Pacific Group to the top management of Phoenix, the discussion began in the conference room of Phoenix.

Basically, everyone's question is the same: Is it worth spending billions of dollars to acquire a bunch of problematic assets? After all, Enron's superficial assets are tempting, but the problems inside are too big, and the cost of revitalizing them is too high.

With the same input, they can build a portfolio with positive returns.

"If you think purely in terms of investment and benefits, there is no problem with everyone's concerns. But one thing, not all assets are measured in money, because there is also a time cost. It takes at least two to three years for an international project to go from review to project approval, to funding preparation and construction. To revitalize an asset, relatively speaking, although the capital investment may be higher, the time cost is much lower. What's more, not all projects require excessively high revitalization funds. ”

"In addition, there are some assets that can no longer even be solved by money alone. For example, Enron's most valuable northern gas pipeline. The 3.5-mile-long, nationwide natural gas pipeline is Enron's most valuable strategic asset. It is almost irreproducible! By taking it, the Pan Pacific Group will have mastered the main artery of US natural gas transportation and the right to speak in the industry. From this point of view, we can pay a higher price. After all, money can be made at any time, but opportunities may not always be available!"