Chapter 346: The Dust Has Settled
Chapter 346: The dust has settled
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On October 22, 2002, the negotiations, which had lasted more than half a year since Rebecca Marc's contact with Vivendi, finally came to an end.
Guo Shouyun signed the contract with Vivendi on behalf of Matrix and Enron Pacific. In addition to the fact that Anping's cooperation with Vivendi does not involve money, Matrix acquired Vivendi's Vivendi Games, Universal Pictures, Universal Pictures and Canal+ TV Network for $7 billion in cash and $5.45 billion in debt, with a total price of $12.45 billion.
Both sides are quite satisfied with this result. It's just that Vivendi is not only satisfied, but also a little unwilling. After all, after selling the assets, Vivendi will inevitably get into trouble. Maybe it's a while, maybe it's getting worse.
"Mr. Guo, in addition to these, you also promised us to invest in Vivendi. β
Guo Shouyun is now well-known in the global financial community, and his investment in Vivendi will inevitably cause other capital to follow suit, which in turn will pull up the company's stock price, which will help Vivendi turn around its current predicament.
"Of course! I never regret what I promised. But how much stake am you comfortable with me?"
"No more than 30 per cent, and half of that must be Class B shares. β
"OK, no problem. β
Guo Shouyun nodded dryly. It's just a financial investment, and such restrictions are nothing to him. Moreover, whether it was the memories of later generations or the contact with Jean-RenΓ© Fortu, it was clear to him that Vivendi would not sink. Therefore, although this financial investment is unlikely to bring him several times the revenue, it will not lose money.
"Mr. Guo, it is a great honor to work with you. I believe this is the beginning of a fond memory for both of us!"
After signing the contract, Jean-RenΓ© Fortu stood up and shook Guo Shouyun's right hand with enthusiasm.
"I'm just as honored. β
"In order to congratulate our successful cooperation, I specially prepared a cocktail party tonight, and I hope Mr. Guo can participate in it!"
"No problem. I've been wanting to have a drink with Mr. Fortu for a long time. β
"Then we have decided, tonight at 7 o'clock in the evening, in the banquet hall of the Raphael Hotel, we will see you there. β
"Okay!"
After leaving Vivendi's headquarters, Guo Shouyun went to the banquet as promised in the evening. After a few staggered encounters, it was more of a compliment and deliberate intimacy. He was not surprised by this. Similar to this kind of social drinking party, it was originally for everyone to expand their social circle.
However, to Guo Shouyun's surprise, Nikolai Sarkozy, whom he had met before, also appeared at the banquet. But it doesn't matter if he comes on purpose or if he copes with it formulaically. This meeting deepened the relationship between the two parties.
Moreover, after two banquets, Guo Shouyun finally had a certain relationship in French high society.
The deal with Vivendi still needs to be approved by the French and U.S. Departments of Commerce, which will take some time. However, there are no industry monopolies involved, and there are no major enterprises involved in the national economy and people's livelihood, and the relationship between France and the United States is not as tense and mutually defensive as that between the United States and China. Therefore, although the approval will delay the time, it will not cause the transaction to be aborted.
However, while the deal is still being approved, the partnership between Guo Shouyun and Vivendi has already caused a sensation in the global business community with major media coverage.
"$12.45 billion, a new giant has been born in Hollywood!" - the headline of the German newspaper Bild.
"Matrix Group's huge deal with Vivendi!" β the headline of the French newspaper Le Figaro.
"Dance of the Elephants, $12.45 billion, Matrix's Huge M&A!" β The New York Times.
"After a year of silence, the son of finance made a shocking merger and acquisition of a film and television giantββ Los Angeles Times.
When the outside world was bustling, Guo Shouyun still stayed in France to continue his plan.
ββ¦ Boss, the most popular news in the world right now is your message!"
"The news is time-sensitive, and when more sensational news comes out in a few days, naturally no one will pay attention to me anymore. After a pause, "Okay, that's all for the digression, how did I explain your business?"
"It's basically agreed, and Merrill Lynch, Goldman Sachs, ******, and Citibank will jointly raise $9 billion for us. The term is half a year, and the interest is 5.7%!"
"9 billion? When did these financial giants become so generous? β
"They're not generous. Rather, they realized the value of Yahoo and eBay. Moreover, Merrill Lynch itself is recovering well. That's why they gave a high collateral ratio of 80%! In addition, the Fed has continuously lowered the federal funds rate, injecting a lot of liquidity into the market. Financial institutions also need to find a place for their money. Otherwise, the reserves placed in the Fed alone would be a large loss, and the interest rate on overnight lending would not be as good as that of commercial loans. β
Regarding the reserves, here is a brief explanation. The Federal Reserve requires all financial institutions that absorb depositors' deposits in the United States to deposit a portion of their funds with the Fed to meet depositors' sudden withdrawal needs. This funding account is called a reserve account. According to the Federal Reserve, each institution's reserve account balance cannot fall below a certain percentage of the short-term deposits it absorbs. This ratio is known as the reserve ratio or reserve requirement ratio.
If a financial institution's reserves fall below the requirement, it must find a way to raise funds to replenish it. Conversely, if the reserves are higher than the Fed requires, the excess is called excess reserves and can be withdrawn at any time.
Generally speaking, the part that does not exceed the proportion is called the statutory reserve, and the excess part is called the excess reserve. Whether it is a statutory reserve or an excess reserve, the interest rate is very low, basically not more than 1%. Of course, the situation will change with the times. However, statutory reserves and excess reserves account for 20% of bank assets. So, if a bank has more deposits. The more it has statutory reserves and excess reserves. If no suitable investment is found, then these reserves are a loss for the bank. After all, you also have to pay depositor interest.
"When can the loan be released?" asked Guo Shouyun.
"Once the contract is signed, you can ... Boss, though. Isn't the repayment period of half a year too short? After all, that's $9 billion. β
"For me, half a year is already a long time!"
It has been less than half a year since the outbreak of the Iraq war, and the opportunities brought by this war are enough to bring him huge benefits in half a year.
When the loan is repaid, you can also avoid paying excessive corporate income tax.
"By the way, the subject of this loan must be Phoenix Trust, or Phoenix Company. β
"Understood. I will sign the contract in the name of Phoenix. After a pause, "Boss, you... Are you ready to shoot again?"
William Zhang is not a fool either, Guo Shouyun's half a year has exposed a lot of information.
"If you have spare money in your hand, put it in the Thunder Fund!"
Guo Shouyun didn't answer directly, but he had already made things clear in his words.
"Yes, I'll prepare when I get back!"
There was a hint of excitement in William Chang's tone. No one will refuse to make money.
"Keep this matter a secret, don't tell outsiders. β
"I know. However, the amount of funds under the management of the Thunder Fund has exceeded $40 billion, and the financial community has paid a lot of attention, but I am afraid that it will be difficult to hide. β
"I know that. I don't plan to hide for long, just a week or two. Before anyone else reacts, it's enough to get ahead of the curve. As for the future, I still wish they were moving quickly with the thunder. It's just right to build momentum. β¦ Okay, that's all for now. I'm going to have a meeting in a minute. β
"Yes!"
"Remember to get the loan done as soon as possible!"
After the words fell, Guo Shouyun hung up the phone.
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