Chapter 376 Citi Board of Directors
John Reid gained a lot and even some surprises during his trip to London, but he knew that if he didn't implement these gains for a day, he couldn't relax for a day. Therefore, after a brief celebration with Tang Bao, Alwaleed, and others, John Rhett left in a hurry with Miller and headed straight for the airport.
Well.
John Reid and Tang Bao and Alwaleed are right, but they must be approved by Citibank's board of directors before they can take effect. He needs to rush back to the U.S. headquarters immediately to present the negotiations to the board of directors in detail and discuss and vote.
Danston Manor.
"Don, will this plan to invest in Citibank go well?" After seeing off John Reid and Miller, Alwaleed and Tang Bao returned to the living room and brought up the topic of investing in Citibank again. He temporarily reduced the amount of investment, but $500 million is still not a small amount, and he is inevitably a little lacking in confidence. So I want to explore Tang Bao's tone and find a little psychological comfort.
"Smooth ...... What are you referring to? Tang Bao asked with a smile.
"Huh?"
Alwaleed was stunned for a moment, then came to his senses and explained: "There shouldn't be much obstacle to the capital injection plan, after all, Citibank is embattled, and it is difficult to find investors except us." By 'smooth', do I mean that there is a risk in investing in Citibank? ”
Tang Bao laughed when he heard this, he looked directly at Alwalid, and said in a calm tone: "Prince Waleed, you are not new to the business world, and you are no stranger to financial investment, such a simple question should not come from your mouth." How can there be a reason not to take risks when investing? Even the lowest-yielding bank deposits can run into a bank failure...... You say that investing in Citibank is risky! ”
This.
Alwaleed scratched his head in embarrassment and said, "Don, of course I understand this. However, as you know, I invested $500 million this time...... If you lose it, it will hurt your muscles and bones. I just want to know if Citibank can get out of bankruptcy? ”
"Prince Waleed, when we didn't know each other, you planned to buy a stake in Citibank. Why are you so timid now? ”
"It was the beginning, and now it is now. When I decided to buy Citibank stock, Citibank's problems weren't so serious. Speaking of which, I really have to thank you, Don, that when I decided to buy Citi stock, the stock price was around $23, and now it's down to $12 per share. If you hadn't stopped me from acquiring Citibank shares, I would have faced a huge loss of investment. Alwaleed said with a look of rejoicing. Last year, U.S. bank stocks fell as a whole due to the savings and loan crisis, and Citibank's stock also fell, but it performed relatively well, and it was not until Citibank's problems completely exploded this year that the stock price plummeted.
Scold.
Tang Bao smiled secretly, he prevented Alwaleed from buying Citibank shares, not to help him avoid investment losses, but to worry that Alwaleed's large purchase of shares would attract the attention of Citibank, and then connect with Alwaleed. He clearly remembered that in his previous life, Citibank noticed that someone had increased their holdings of Citibank shares in the stock market, and it was only after following this clue that he finally got together with Alwalid.
"Tang, you just tell me the truth, Citibank is not in danger of bankruptcy and liquidation?" Alwaleed rejoiced, then asked solemnly.
"Citibank is the second-largest bank in the United States, and the U.S. government will not sit idly by and watch it go bankrupt if it goes bankrupt. Moreover, Citibank's biggest problem is the poor cash turnover, and this problem will be solved after we inject capital into Citibank. However, Citibank's real estate problems are serious, and it is not easy to get out of trouble in a short period of time. Tang Bao said.
"That's good!"
Alwaleed smiled with relief.
"You just trust my judgment like that?" Tang Bao looked at Alwalid's surprised expression and asked.
Hear the words.
Alwaleed laughed, "Of course. Before, he ignored a question, that is, Tang Bao spent countless energy to invest in Citibank, will he sit back and watch Citibank go bankrupt? Of course not. He was sure that once Citibank faced an unsolvable trouble, Tang Bao would definitely take action again, and would never abandon Citibank easily! With Tang Bao's support, it is very difficult for Citibank to go bankrupt.
……
……
……
Late at night.
399 Pike Avenue in New York, where Citibank is headquartered, is still brightly lit. Citibank's directors and senior management rushed back to the company one after another and gathered in the conference room. The meeting was chaired by John Reid, and the only issue discussed was the injection of money by Don and Alwaleed into Citibank.
"The plan for Don and Alwaleed to invest in Citibank was sent to you by email before I returned, and I am sure you have read it in detail. Do you have any opinions? John Rhett sat at the top of the seat, slowly scanning the crowd and asked calmly.
"I'm against it!"
After a brief silence, one of the directors was the first to speak.
Then.
Another chimed in, "I'm against it too." John, you don't have the right to reach an agreement with Don and Alwaleed to inject capital into Citibank without the authorization of the board of directors. ”
John Rhett looked at the two directors who objected, and his brows couldn't help frowning slightly, these two directors were his opponents in the board, and he was a little unhappy, but he didn't have a direct attack.
"Everyone knows that our Citibank is seriously underfunded, and raising funds is also hitting a wall again and again, and Tang took the initiative to inject capital into Citibank at this time, which is a good thing, but also a hidden danger. We have to carefully consider the consequences of Tang's stake in Citibank. ”
"Tang's East West Bank has been expanding wildly through mergers and acquisitions, and at this time, will it hide its intention to annex Citibank? Not to mention anything else, Tang's stake in Citibank is equivalent to directly entering the interior, which means that Citibank no longer has secrets from East West Bank. ”
"That's right, Don's plan to inject money is unacceptable. But Alwaleed's investment is acceptable, and I believe that as long as the news of Alwaleed's investment in Citibank comes out, many wait-and-see investors will take action......"
"I agree."
"Choose Alwaleed, abandon Don's capital injection plan!"
……
Many directors nodded in agreement. They were wary of Don's intentions to invest in Citibank, but they did not ostracize Alwaleed.
Scold.
John Ryder smiled helplessly, "It's a good idea, but don't forget, Alwaleed was introduced by Don to invest in Citibank, and he invested behind Don, and we vetoed Don's investment plan and chose Alwalid, which would offend Don." Even if we don't care about offending Don, would Alwaleed be willing to take the risk of offending Don and continue to invest in Citibank, but I'm afraid that most of them will give up investing together, right? Taking a step back, Alwaleed agreed to invest alone, but could the other party's financial resources and influence help Citibank out of its predicament? ”
yes, is Alwaleed good enough to help Citibank out of trouble...... The directors were silent, and no one dared to answer, they had all heard of the Saudi prince for the first time, and they did not know much about his background. Citibank's problems cannot be solved with a single amount of money, and subsequent funds may be as high as tens of billions of dollars.
Looking at the silent crowd, John Reade paused, and continued: "Tang's stake in Citibank will cause a lot of trouble, and it will also have many benefits, and the most important thing is that in addition to Tang, it is difficult to find an investor who is willing to help Citibank get out of trouble. Some time ago, you didn't see what happened to Citibank when it raised funds, no one was willing to get involved in Citibank's investment, and investors were very cold. ”
"That is also unacceptable to Don's investment. After Tang injected capital to hold 15% of Citibank's equity, can Citibank still be controlled by us? ”
"Yes, that's right. With 15% of the equity, Tang will become the first shareholder of Citibank, although he does not have a controlling stake, but Tang has the funds that Citibank urgently needs, which is equivalent to mastering Citibank's lifeline...... Tang has the biggest leverage in Citibank's operations. ”
It's you guys again~!
John Rhett was furious when he found out that it was his nemesis who jumped out against him. But it's not good to have a seizure, because the other party has a point.
"So what do you think is the solution to Citibank's serious lack of funds?" John Ryder stared at his rival and said coldly.
"Huh. It's not easy, refuse Don to inject capital into Citibank, but you can use this matter to make a fuss. ”
"Don has a strong influence on Wall Street, and many investors are influenced by his every move. If the outside world learns that Tang intends to buy Citibank at a low price, those investors who have a wait-and-see attitude towards Citibank will inevitably be stimulated and moved. ”
John Ryder looked at the two smug rivals and asked coldly, "This should be the countermeasure you have thought of a long time ago, right?" ”
"Hehe, of course, after learning that Tang was interested in taking a stake in Citibank, we came up with this countermeasure. Not only did not let Don take a stake in Citibank, but also used him to help Citibank get out of trouble. ”
"Stupid."
John Radder said with a sneer.
"What did you say?"
"I said you were stupid, childish, ridiculous." John Reid said in a loud voice, "Using the news that Don intends to take a stake in Citibank can certainly attract investors' attention to Citibank, but have you thought about it, will Don sit back and watch being used?" He only needs to stand up and clarify, and by the way, make a few remarks about being bearish on Citibank, and it will knock Citibank back to its original shape, or even more miserable. (To be continued.) )