Chapter 111: Bringing the Pentagon into the game
Bill Gross's trading methods make his opponents very uncomfortable, he is always engaged in surprise attacks, whenever AT&T's side stabilizes Motorola's stock price, Bill Gross will suddenly short Motorola's stock, but when AT&T wants to compete with Bill Gross, Bill Gross slips away. As a result, AT&T's side has accumulated more and more losses.
Bill Gross has his own struggles, because he is not sure how much Goldman Sachs and Morgan Stanley will support AT&T's side, so Bill Gross can only rely on this rogue tactic to wear down the patience of his opponents and wait for an opportunity to defeat them.
During this time, Eva began to meet with Wall Street bankers under Schwartzman's arrangement, including fund houses, commercial banks, investment banks, insurance companies, and trust companies. A month ago, these companies were still ignorant of Eva, but now they have changed their attitudes and started to actively seek cooperation. The most critical of these is Bear Stearns, one of the major shareholders of Motorola and one of the five major investment banks on Wall Street. Because of the suspension of AT&T, Motorola, which originally played a secondary role in this business war, became the biggest shield for AT&T's profits. This infuriates Bear Stearns, which gives Eva an opportunity.
The biggest obstacle that Peterson has encountered in finding new investors in Japan is the Japanese government's Ministry of International Trade and Industry, and the president of NTT has agreed to join the Iridium program under Peterson's persuasion, and Peterson has also received Sony's support through his personal relationship with Sony President Akio Morita, in return, Sony will receive orders for the production of terminal equipment for the Iridium project, in addition, another powerful manufacturer in Japan, the Kyocera Group, is also willing to join in and participate in the manufacturing of Iridium terminal equipment.
Akio Morita and Kazuo Inamori, the president of Kyocera, are like superstars in the Japanese economy, and they are the representatives of the Japanese economy in this era. At Peterson's request, the two criticized the conservatism of the Ministry of International Trade and Industry in the newspapers one after another, and Noboru Takeshita, as the Minister of Finance, also led his own Takeshita faction to join the siege of the Ministry of International Trade and Industry, because Mikhail had already promised privately that the secretary of Minister Takeshita could indirectly hold one-thousandth of the shares of Iridium through a shell company in the Cayman Islands, and according to the total investment amount of the Iridium plan, this is already a wealth of tens of millions of dollars, and once Iridium is listed in the future, this investment will be dozens of times the investment. Mikhail, who got Minister Takeshita, indirectly pulled the Bank of Japan and the Bank of Tokyo into the camp of Yota Communications.
Minister Takeshita is a powerful political force in the current ruling Liberal Democratic Party (LDP) and is said to have a strong chance of becoming the next prime minister. However, the LDP is not monolithic, and the Nakaso faction, represented by Prime Minister Yasuhiro Nakasone, is still the largest faction within the LDP, and the Ministry of International Trade and Industry is firmly in the hands of the Nakasang, and the companies led by industry representatives Akio Morita and Kazuo Inamori are important sources of revenue for the LDP.
Shortly after the Ministry of International Trade and Industry officially replied to NTT, Peterson boarded the business plane that Eva had arranged for him and flew over the Pacific Ocean. Early the next morning, Bloomberg News immediately broke the news that Yota Communications' Iridium plan had received support from the Bank of Japan, Bank of Tokyo, NTT, Sony, and Kyocera, and that they would join forces to inject $7.5 billion into the Iridium program to acquire about 15 percent of Iridium's original shares, which are worth $50 billion without going public.
With the participation of the Japanese consortium, it is time for Wall Street to re-examine the value of the Iridium program. Shortly after this announcement, the emerging aristocratic Bank of Colombia and Lehman Brothers, one of the five major investment banks, also announced their entry into Iridium, and they will each invest 2.5 billion yuan to participate, and in return, the two companies will each get a controlling stake of 5%.
Eva gave up 25 percent of her shares to get $50 billion in capital reserves. However, the investment of Bank of Colombia is only a front, in fact, it is just a left-handed trick of Gorky-based enterprises, but outsiders do not know the relationship between Bank of Colombia and Yota Communications.
With 50 billion dollars, Yota Communications no longer has any worries, and Peterson, who returned to the United States, began to use his connections in American politics to find a new partner who could replace Motorola. Even Eva was surprised by the partner Peterson was looking for.
"What, you want the Pentagon to get involved, to invest in us?" Eva was taken aback by Peterson's idea, and he had no idea that the Pentagon could also be called a partner of Iridium.
"Eva, if you don't want Iridium to fall into long-term losses after its official operation, getting a Pentagon contract is definitely the most cost-effective, and we can lobby them to abandon the development of their own global satellite communications system and use ours instead. There is another advantage of having the Pentagon in charge, that is, those Japanese on the board of directors will never dare to make a mistake in the future, even if Iridium is really listed in the future, they will not be able to rely on the funds to buy outstanding shares to control the company and exclude you from the board! Peterson patiently explained.
"Well, Mr. Peterson, I'm really intimidated by your idea, and I'm not against it!" Eva said apologetically. She was actually frightened by Peterson, and the Pentagon would have to scare herself to death if she knew that the boss behind Iridium was the Minister of Foreign Trade of the Soviet Union.
"Eva, the reason why you went to Motorola in the first place is because they had developed a similar satellite communications system for the Pentagon, but I got slightly different information that there was also an important player in the system, the arms manufacturer Lockheed Martin. We might be able to reach out to this company and see if what we can't get from Motorola can be from Lockheed Martin! Again, Peterson suggested, Eva now deeply felt the true value of Blackstone's $10 million spent, and that Peterson and Schwartzman were no match for Wall Street's money-only bankers.