General Motors Headquarters, President's Office, Detroit, Michigan, USA

"The situation is not ideal, Boss, Rick, Goldman Sachs want exclusive underwriting rights, and if Saturn Motors is listed separately, according to the net assets of 1.8 billion US dollars, the total share capital of 1.8 billion shares, the net assets per share of 1 US dollar, 25% A total of 450 million shares are used for IPO offerings, with a subscription range of 2.50-2.75 per share, and a total of 1.125 billion to 1.2375 billion can only be raised, which is too far from our expectations, of course, the market value of Saturn Motors after listing will reach between 4.5 billion and 4.95 billion, and if the stock price rises, the market value can increase a little......"

Mike Doug spoke in a low tone when he faced his two top bosses, what he didn't say was that the results of the talks with Morgan Stanley were not as good as Goldman Sachs, Morgan Stanley also wanted exclusive underwriting rights, and asked for a 9% commission, which is not counted, the subscription price per share was 2.25-2.50, insisting on it was no different from grabbing General Motors, the only difference was that the other party did not mention the injection of Saab Motors assets at all......

"Mike, wasn't that Goldman Sachs Lyndon Bock your old colleague in Goldman Sachs' investment department at the time, and couldn't help at all? How could you put forward such harsh conditions? Rick Wagner's brows furrowed, but Smith, the president and CEO next to him, slammed the table in anger and shouted, "Joke, according to the price offered by Goldman Sachs, this financing amount is not enough for the loss of GM's market value today, they are trying to rob us and want to go crazy!" Wouldn't it be a joke that the subscription price of $2.50 per share was passed out, what did Morgan Stanley say?! They're not going to pay $2.50, are they?! ”

"Morgan Stanley's offer is 2.25-2.50, I think the problem is a bit complicated, before obtaining the exclusive underwriting right, it is almost impossible to expect Goldman Sachs or Morgan Stanley to join us on the stock market to protect the GM disk and pull up the stock price, the higher the GM stock price, the more chips we have, and the price quoted by the other party to underwrite the Saturn car listing will rise, these Wall Street guys are sharks with bloody mouths, and they won't get along with the money!" Mike Doug's words mean that GM seems to be a bit cornered!

"I don't agree with this, the higher the subscription price of the Saturn car listing, the larger the financing amount, and the more commission income the underwriter has. Smith gasped, his eyes red staring at his two subordinates, Rick Wagner's face was quite helpless, and he had to explain, "Boss, when we signed the underwriting contract, of course, Goldman Sachs or Morgan Stanley wanted to desperately lower the price, but once the exclusive underwriting rights were obtained, who told you that they would only sell the 450 million shares at a price of $275 million?" It may be possible to sell for 5 or even 7 dollars, and the commission is given in proportion to the actual financing amount! ”

"Isn't this the end of it? So why are you still desperately lowering prices? Smith couldn't turn around for a while, Mike Doug and Rick Wagner glanced at each other, and had to continue to explain, "BOSS, so the other party wants exclusive underwriting, and requires the reserve price to underwrite, if it is a reserve price subscription, of course, the other party only takes 7% of the commission, but the income beyond the reserve price, the other party wants 10%-50% of the commission, and if the final offer price exceeds 1 times the reserve price, the premium part of the underwriter will take 80%, and we will only take 20%, Saturn is such a big piece of fat, This is the starting point of people's price reduction! ”

"$2.50 per share is already 25 times the price-to-earnings ratio, right? Could it be that Saturn Auto is really so optimistic about the future of investment banks and brokers? Smith didn't believe what was happening in front of him, but he didn't expect Mike Doug to nod and say, "In addition to the exclusive underwriting rights and reserve price underwriting of Saturn Motors required by Goldman Sachs, there are additional terms, that is, the IPO orders of GM's subsidiaries in the future, and Goldman Sachs has priority under the same conditions!" ”

"No, I can't ask Merrill Lynch to cheat and then be picked up by Goldman Sachs and Morgan Stanley bastards, Rick, do you think if you don't accept Goldman Sachs or Morgan Stanley's harsh conditions, what other way to get out of the current predicament?" Smith set his sights on his own think tank and CFO, and Mike Doug's cousin disappointed the president of General Motors, and Smith even wondered if Mike Doug had asked Goldman Sachs to be bribed to be a lobbyist for the other party!

"The criticism of Saturn's listing in the market is mainly focused on GM's lack of cash flow, and the director is forced to spin off its wholly-owned subsidiary and bring it to the market, in order to return funds to reduce the pressure on GM as a whole...... If you still need financing, I am afraid that the way of spinning off subsidiaries to go public will have to slow down, and continue to issue corporate bonds to raise funds, of course, so that the balance sheet is more ugly, and the financing cost is too high! ”

As the CFO of General Motors, Rick Wagner actually felt that Smith was a little too hasty in the IPO of a subsidiary like Saturn Motors, although the mood of the new official to take office with three fires is understandable, but the relationship between all aspects has not been coordinated well, and the preparation is not sufficient, rashly and the original best partner Merrill Lynch Securities, which is not worth it from any point of view, and Mike Doug's encounter in front of Goldman Sachs and Morgan Stanley also shows, Goldman Sachs and Morgan Stanley both belong to the role of the wolf of Wall Street, the icing on the cake can be, and the charcoal in the snow is not to be imagined!

"No, the spin-off of Saturn Motors is my first shot after taking office, and I must not be dumbfounded, so I even let the old guy Owen Bieber steal the chairman's position, and the board of directors is all over, and then I will give up, what will the directors think of me? They didn't appoint me as president and CEO to see what happened to me today! This bad idea of slapping yourself in the face will definitely not work! I will not say yes! Smith slammed the table a little out of shape.

Rick Wagner and Mike Doug looked at each other, it is rare to see Smith lose his temper to such an extent, obviously, the pressure on the boss of the new official is indeed extremely great, for a while, Mike Doug only said, "Or, or go back and shake hands with Merrill Lynch, at least listen to the other party's IPO offer and operation plan, I guess with Merrill Lynch's wealth and the first position in the industry, the appearance will not be more ugly than Goldman Sachs or Morgan Stanley, Now Goldman Sachs and Morgan Stanley know that we have offended Merrill Lynch, so they are unscrupulously lowering prices to take advantage of us! ”

"Now touch the nose and go back to Merrill Lynch? Where do I put my face as the president of General Motors?! Smith blushed and said angrily, but his heart couldn't help but move, for the leaders of these large companies, the face of this thing sometimes really has to give way to the interests of the company and the individual, there is no shame in being mercenary, the enterprise is originally a profit-making organization, and there is no room for professional managers who can't make money for shareholders and investors!

There was silence in the office for a long time, and Rick Wagner finally continued, "The bell must be tied to the bell, Francis, who can bend and stretch is the big husband, as long as Saturn can be listed smoothly, it is worth it, now look, Wall Street's investment banks and brokerages are all guys who see the wind and make people eat people and do not spit out bones, compared to Goldman Sachs and Morgan Stanley, I think Merrill Lynch is still the first choice for cooperation, not to mention anything else, as long as we quickly cut through the mess and Merrill Lynch Securities, one will teach Goldman Sachs and Morgan Stanley a lesson." Second, if Merrill Lynch can't sell Saturn cars at a good price, then Goldman Sachs and Morgan Stanley will not have that ability! ”

"BOSS, Rick is right, either simply terminate the Saturn car listing plan, or give up the previous suspicion to cooperate with Merrill Lynch, at least, listen to the other party's settlement conditions and IPO offer, this is no harm! If you find it inconvenient, I, the vice president, will come forward to talk to the other party on behalf of General Motors! I'm not afraid of losing face! Mike Doug stepped up and volunteered.

"Well, since that's the case, it's only true that I, the president of General Motors, will talk about it in person!" Smith finally gritted his teeth and made a decision.

"Boss, do you really want us to come with you?" Rick Wagner was a little eager to try, and he was really afraid that his boss would mess things up again, and there was no room for saving. Smith gave him a blank look and said, "Of course I'll go by myself, what are you going to do?" Learn a little bit from me, do you know what a gentleman's agreement is? The two of them face each other to finalize the matter, and you should appear for the rest, this matter can't be delayed, my eyelids are jumping, and tomorrow GM will collapse again, and things will not be able to be cleaned up! ”

Smith returned to his desk and rang the intercom, "Kate, make an appointment for me to meet that new friend of yours, the sooner the better, just two people, old place, I'll wait for him!" ”

Half an hour later, a luxurious room in the Royal Boat Street Hotel

"Mr. Smith, to be honest, if it weren't for Kate's soft begging, I wouldn't have met you in private again, I have to avoid suspicion, otherwise the SEC will charge you and me with insider trading in stock prices, and everyone will not be able to eat and walk away at that time!" Jiang Yelin, who was wearing pajamas, looked at General Motors President Smith on the other side of the sofa with a dejected face.

"Call me Francis, Django, this matter, it is true that GM has something to think about, but the IPO public bidding is a requirement that the board of directors and the new chairman blindly insist on, and I am afraid that I, the president and CEO, will operate in the dark, so your boss Gordon Gecco came that day, and I really couldn't finalize the cooperation between the two sides in person...... "Smith wanted to blame the previous unhappiness between the two sides on the board of directors and the new chairman Owen Bieber's restraint on him.