Chapter 102 Korea Development Bank
"No, we can't be so passive, we have to find a way!"
The CEO of Kaminmen Brothers, Dick Brown. Fude yelled with a cold face, waved his hand at the wall, and the screen went off in response, and then he viciously slammed the remote control in his hand on the table, making a loud "bang".
And the other directors of the Kaminhamon brothers in this room, although not as good as Dick. Fude reacted violently, but most of them were also sunk and full of displeasure.
On CNBC's program just now, the host broadcast a piece of news about the Kaminari brothers, specifically an unfounded rumor: the Kaminari brothers have a liquidity crisis and are planning to raise funds through the guò Fed's rediscount window. In fact, the Kaminari brothers had no such intentions.
Since David. After Einhorn began to openly sing about the Kaminmon Brothers, all kinds of negative news about the Kaminmon Brothers on the market sprung up one after another. In just two or three trading days, the share price of Kaminari Brothers has fallen by more than 20%, a figure that shocked the management of Kaminari Brothers. People like Einhorn have such a strong market appeal.
For this Dick. Fude had ordered the Wall Street Journal to be banned, but he was outraged that negative news about the Kaminmen Brothers continued to appear in the media.
"How are we going in the negotiations with UBS, HSBC and GE?"
After a furious tantrum in a rage, Dick. Fude finally had to calm down and face the mess he had been fighting for all his life.
On June 9, Kaminmen Brothers will release its first-quarter financial statements to the market, and everyone present is clear about the final result, a loss of $2.9 billion. If the market does not appear similar to David. A situation where Einhorn is blatantly shorting. The Kaminmen brothers were able to withstand the pressure on the stock price, but a speech from Einhorn pushed the Kaminhamon brothers to the forefront, and in this case they had to fight back against the short sellers by finding a new source of funding in the meantime.
Otherwise, when the No. 9 financial statement is released, it is not known what the stock price of Kaminari Brothers will fall into at that time, and everyone here is well aware of this fact.
In fact, the Kaminari brothers' self-help began after the disclosure of the financial statements for the fourth quarter of the last fiscal year (March 08). Shocked by the collapse of Bear Stearns, the management of the Kaminmen Brothers began to look for possible capital injections or even acquisitions in the global market, with groups such as HSBC, UBS, GE and AIG being the most likely.
Syndicates such as UBS and HSBC naturally became interested in Kaminari Brothers by entering the North American investment banking market. General Electric and AIG, on the other hand, are purely from Dick. Fude's personal relationship, he is friendly with the CEOs of both companies, and through Guò personal relationship, he wants to get their capital injection.
But friendship is friendship, and business is business. At such a time, it is obviously impossible to rely on friendship. So Dick. Fude's words were spoken for a long time, and no one answered his words, and it was clear that the negotiations with the above-mentioned consortium were not ideal.
"Maybe we should try something else!" After a long silence, someone finally spoke, "South Korea should be a good choice." ”
The person who spoke was the chief strategy officer of the Kaminari brothers, Davy. Gao De Fabo, a middle-aged man who wears a red tie all year round, pushed the glasses on the bridge of his nose and said seriously: "The South Korean government has recently introduced a policy. The general content is to restructure the financial industry and further open up the financial market. I think in this context. They're going to be interested in an agency like ours because that's exactly what they need. And most importantly, the CEO of the Korea Development Bank used to work for Kaminarimon Korea, and he has a very good relationship with the people we have there, so I think we can take advantage of that. ”
"Of course, I'm personally leaning towards GE or AIG. However, the South Korean side can be used as an alternative, at least after the above two companies reject us. If possible, I think we should start to contact the South Korean side now, lest the stock price fall and lose the initiative in negotiations. ”
"If we can really bring in $5 billion from South Korea. The first thing we have to do is come up with $2 billion to buy back shares, to give these short-selling bitches in the market a hard blow, and let them know that we are awesome. "Finally Davy. Gao De Fabo said viciously.
Thanks to David. Gao De Fabo has always appeared in front of everyone as a humble gentleman, so when he said "raised by a son of a bitch", everyone was stiff and looked at him with strange faces. However, they soon thought about the precarious situation facing the Kaminari brothers, and everyone was relieved.
The shrinkage of the market value of the stock means that the net worth of everyone here has shrunk, and it is strange to be in a good mood for the short sellers in this situation.
"Okay, let's talk about negotiating with the South Korean side!"
Without a hint of hesitation, Dick. Fude immediately agreed.
In fact, although Kaminari Brothers has a branch in Seoul, this company is basically equivalent to nothing, and it does not help Kaminari Brothers at all, and because of the high salaries of employees, it consumes a lot of money, which can only be regarded as breaking even. However, in order to maintain good relations with the government and show that Kaminari brothers attaches great importance to the Korean market, this branch has been retained. And now strange things have happened, the former CEO of Kaminari Korea has been appointed as the CEO of the Korea Development Bank, and even the people at the headquarters of Kaminari Brothers are surprised to hear the news.
This shows that at least in the drilling camp of the top level of South Korea's financial circles, the efforts of Kaminari South Korea have not been in vain, because the Korea Development Bank is the only policy bank in South Korea, and it is inextricably linked to the top of the government, and it is far closer to the decision-making level than other conglomerates.
These thoughts are just in Dick. As soon as Fude's mind flashed, he decisively decided to make contact with the South Korean side. Now that he can catch a straw, he will treat it as a towering tree.
……
Two hours later, the group set off from the Kaminhamon Brothers' underground garage, aiming for New Jersey across the Hudson River. Among the group were Kaminman Brothers' global legal counsel, M&A experts, financial experts and law firm people, who did not leave JFK Airport. is afraid of being captured by reporters, so as to leak the news. At the airport in New Jersey, there was a plane waiting for them.
At the same time, Zhao Jianho, CEO of Kaminmen Brothers Korea, also urgently contacted the Korea Development Bank and Hana Financial Group to finalize the negotiations between the two sides. To his dismay, though, the other party's higher-ups seemed to be entertaining others. There was no time for a day or two to receive the guests from New York, and after much negotiation, they agreed to let the middle management attend the negotiation meeting first.
After all, there is still nearly a day before the negotiation, Zhao Jianhao comforted himself like this, as for who the other party received, he did not ask in detail, after all, it has little to do with him.
But in fact, if he knew who the other party was receiving, he probably wouldn't think so.
"It's good, it's a good place!"
When Zhongshi's plane landed at Incheon International Airport in South Korea. Walking out of the VIP tunnel, he was quickly taken to Jeondo Plaza in the center of Seoul by several Mercedes-Benz cars.
The Korea Development Bank's headquarters building is located on the east side of Jeondo Plaza, which is the heart of Seoul City because of its proximity to the Han River and the National Assembly Building. Being able to build a 1 million square foot building in such a place makes the Korea Development Bank's position in Korea self-evident.
The Korea Development Bank Building, which started construction in '95, took four years to build and was finally completed in '99, but it was almost unfinished due to the financial crisis. However, because of the capital injection of a foreign consortium, it was finally completed without danger. The overall shape of the building is boxy. From the outside, it appears to be a standard cuboid, with only a portion left open in the northern corner. In its place is a spring-like spiral staircase. It is said that the design was inspired by the jade seal of ancient Korea, but this claim has not been confirmed. However, this also reflects the status of the Korea Development Bank in South Korea's economic activities.
As the only policy bank in South Korea, the Korea Development Bank has been injecting "blood" into the Korean economy since the 50s, and it has nurtured generations of Korean companies from the import and export industry to the manufacturing industry for so many years. But in 97. Due to the impact of the Asian financial crisis, the Korea Development Bank has suddenly fallen into the point of accumulating bad debts, and not only can it not provide fresh "blood" to enterprises, but it needs supplementary funds from the government. At this time, the South Korean government has already allocated a huge amount of money to save the economy because of the bankruptcy and reorganization of various domestic enterprises. So there is no more liquidity injected into the bank, especially in foreign currencies.
At this time, the voice of the transfer of part of the Korea Development Bank sounded at the right time, and the view was that as long as it maintained a 51% controlling stake, the Korea Development Bank could transfer part of its equity to foreign investors, but this part of the equity could only be open to foreign investors, because it could expand overseas markets, and second, because there was a lack of dollar capital at that time, and the ability to raise dollar capital could resist the risk of fluctuations in the local currency exchange rate.
It was in this context that Jong-seok and his Tianyu Fund exchanged $2.5 billion for an 11 percent stake in the Korea Development Bank, making it the second-largest shareholder after the South Korean government.
Although Jong-seok has reduced his share to 5.6 percent after several reductions over the years, he remains the majority shareholder of the Korea Development Bank. So as soon as the news of his arrival in Seoul broke, people from the Korea Development Bank took him to the office building.
And the person in charge of Hana Financial Group, as the largest bank holding company in South Korea, also hurried to the airport after learning that Zhongshi had arrived in Seoul, but he was a step late, and Zhongshi had already been picked up by someone from the Korea Development Bank. In desperation, President Kim Jong-dae and his entourage had no choice but to drive to the headquarters of the Korea Development Bank.
The reason for this is that Zhong Shi also owns shares in this company, and Tianyu Fund, which owns 3.1% of the shares, is the second shareholder of Hana Financial Group, after Goodman Company of the United States. Unlike Goodman, Tianyu has always maintained a good relationship with the Korean equity representatives and does not get involved in the company's internal fighting, so they have a good reputation within Hana Financial Corporation, which is one of the reasons why Kim Jong-dae did not hesitate to "condescend" to greet Jong-dae as soon as he heard the news of Jong-seok's arrival in Seoul.
"Of course, this is the highest level of Korean design!" Min Yusheng, who was in charge of the reception, replied smugly, but his face quickly changed, his arrogant expression was swept away, and he said humbly, "Of course, this is only the level of Korean design. Actually, I think it's pretty average. ”
Zhong Shi smiled slightly and didn't say anything more.
After touring the inside of the Korea Development Bank, Min Yusheng led Zhongshi outside. Although he was well versed in East Asian culture, he did not understand the purpose of Zhong Shi's trip, but drinking and eating was an inevitable procedure. (To be continued......)
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