The Magician’s Memorial - Chapter 294



Only Noblemtl

294. The power of unity (3)

The White House moved really quickly.

Less than 15 days after announcing its intention to acquire GM to the Minister of Finance, GM filed for bankruptcy protection.

“GM’s stock price has really fallen by cents.”

“It’s still falling. I think it could fall to 75 cents.”

A CEO was looking at GM’s chart with a smile on his face.

This was a reaction to the fact that a company that was considered the pride of America had become a penny stock.

“I don’t think there will be many people who will make an uproar now that GM is being sold.”

“It will decrease a lot, but it only takes one person. Former New York City Mayor Giulaini continues to appear in the media and shouts opposition to overseas sales.”

“If you are former Mayor Giulaini, are you referring to the person who lost the Republican presidential nomination in this presidential election?”

“Yes, it may be to rally supporters for the next election, but he even said that President Obama, who wants to sell American companies overseas, is not a patriot.”

It was a politician whose name I had heard several times.

He was one of the Republican Party’s presidential candidates, and I knew him to be quite popular when he was mayor of New York.

“The person who went all the way to the presidential race has a very rough mouth.”

“It seems like they are trying to use this opportunity to lower the president’s approval rating and strengthen their own position. Shouldn’t they go on the defensive? If Republican supporters unite, it could be a little difficult.”

“Start responding passively. Don’t necessarily increase interest by responding fully.”

“Former Mayor Zulaini’s remarks have not yet gained weight. I think it would be enough to just manage social media, not the media.”

It took a lot of effort to get the media moving.

However, SNS did not need to make such efforts.

Because it was ours. Preventing former Mayor Zulaini’s comments from being shared was something that could have been done with just one developer.

“Just manage it like that for a few days. News that will completely change public opinion will soon break out.”

Even if former Mayor Zulaini could rally his supporters, the game was already over.

Since the news had already been planned to the point where no one could oppose the sale of GM, there was no need to actively defend it.

* * *

A few days later.

Former New York Mayor Giulaini appeared on the air and was being interviewed live.

“Former Mayor Zulaini, GM has filed for bankruptcy. Still, do you still oppose foreign capital taking over American automobile companies?”

“I have filed for bankruptcy, but I am not yet bankrupt. And to protect my pride, it would be better to go bankrupt.”

“Are you saying that we must protect our pride even at the expense of hundreds of thousands of workers in the automobile industry?”

A sharp question from the host.

Although it was a difficult question to answer, former Mayor Giulaini answered without a moment of hesitation.

“It is an inevitable choice to protect the great United States. And if the U.S. government moves, there is no need to go bankrupt. Isn’t the taxes paid by the people meant to be used for this?”

“There is an opinion that using taxes to revive companies encourages moral hazard.”

“The best way would be for U.S. capital to take over GM, but in the current situation, the U.S. government must choose between two options: either provide additional bailout funds or allow the company to go bankrupt.”

Former Mayor Zulaini had no hesitation.

The host also tried to end the interview because it seemed like the same answers would be repeated even if the interview continued.

At that moment, the surroundings began to move busily, and one of the writers handed a note to the host.

“This is breaking news that just came in. It is said that three companies have formed an alliance to take over GM. The companies that make up the alliance are Taewo Group, FinTech Bank, and Warren Buffett’s Berkshire Hathaway.”

The host announces breaking news with his hands shaking.

Because something completely unexpected happened, the host with 20 years of experience was nervous.

Still, a professional was a professional. The host quickly calmed the tension and asked former Mayor Giulaini a question.

“Berkshire, Fintech Bank, and Taewoo Group have joined forces. Two have American capital and one has foreign capital. Do you also oppose the sale of GM here?”

“······.”

It was former Mayor Zulaini who was speechless.

Although he had been able to answer any question without hesitation until now, he was unable to hide his embarrassment at the sudden breaking news.

Looking at the members of the alliance, it was ambiguous to consider it as foreign capital.

Although there was Taewo Group, it was an alliance that included a fintech bank that had grown into America’s top financial company and Warren Buffett’s Berkshire, known as the Sage of Omaha.

What if there is opposition here too?

It could have seemed like opposition just for the sake of opposition, and everything he had said so far could have been seen as lies.

That is why former Mayor Giulaini used the last method.

“Today’s interview will end here. I will investigate matters related to the alliance further and then express my intention.”

Chapter 36: Julhaengrang.

It wasn’t a bad decision.

As he was the mayor of New York, he made a quick political decision and chose the best option: to run away.

* * *

A quiet brunch spot in Washington.

Treasury Secretary Timothy had already arrived, and as I entered the restaurant the owner locked the door.

“To apologize for rudely coming to your hotel room earlier, I took you to a restaurant only I know.”

“It wasn’t something that could be called rude, but I will enjoy the food.”

It was a restaurant that mainly served eggs Benedict, a typical brunch menu.

Bacon and poached eggs were delicious on top of a muffin cut in half, and it was a dish that suited Koreans’ tastes well.

“What do you think? I’ve never seen a better brunch place in Washington.”

“It tastes pretty neat. I’ll have to stop by every time I come to Washington.”

“I’m glad you like it, but I was really surprised when I saw the news. How did you plan and execute such a thing in such a short period of time?”

Coalition for GM Acquisition.

A fintech bank with the capital power of the No. 1 financial company in the United States.

Warren Buffett’s Berkshire is so well-known that he is called the Sage of Omaha.

Lastly, Taewoo Group.

It was a combination that surprised even the Minister of Finance.

His reaction also spoke on behalf of the American people.

“Do you remember the promise I made? That I would proceed with the acquisition of GM so as not to go against public opinion.”

“Public opinion has completely reversed. More than 70% of public opinion says that GM must be sold to the Financial Services Union unconditionally. If this is the opinion, the White House and political circles can push for it without worrying about it.”

It was the Minister of Finance who spoke with a smile.

He seemed quite happy to have been appointed as Minister of Finance and to be able to successfully complete his first task.

“Public opinion is much more positive than I expected.”

“Perhaps it is because of the image of the Taewo Group. Many people remember the Taewo Group’s dedicated rescue efforts during the 9/11 terrorist attacks.”

“It was not my intention to receive compensation. Now, do you believe that I am sincerely trying to take over GM?”

“Of course I believe it.”

He was the finance minister who threatened retaliation if GM was not acquired.

Although GM was too large to handle Taewoo Group alone, it was natural that the finance minister’s suspicions disappeared like snow melting since they formed an alliance to share risks.

“I have kept my promise, so I hope the government will also keep its promise. If we take over as is, it will only delay bankruptcy a little bit. We need clear improvement in the system and change in the system.”

“At the government level, we are putting pressure on the National Automobile Workers’ Union. We are trying to satisfy all conditions, including factory relocation, restructuring, and introduction of automation equipment.”

The finance minister’s outspoken remarks.

This was an impossible statement without permission from the top, and I was able to indirectly confirm that the White House was willing to actively accept my proposal.

“Then, we will meet with GM management and creditors to proceed with the acquisition process. Fintech bank Chairman Dimon will probably step forward in person.”

“Chairman Dimon is a person with a good reputation. We will do our best at the government level to help the acquisition process be completed as soon as possible.”

“Ah! But former Mayor Zulaini was strongly opposed to the acquisition. Are you still doing that?”

“Hmm, we will not conduct such interviews in the future. We have received a promise from the Republican Party to issue a stern warning. And even if you make such a claim, there are few people who will accept it, so there is no reason to do so.”

Preliminary work for the acquisition has now been completed.

All that was needed was to proceed with the acquisition in earnest, a task Dimon was already working on.

* * *

CITI Group Chairman’s Office.

Because it was the office of the chairman of the largest financial company in the United States, it was a place where no one could enter, but I entered with a sense of ease, as if I was walking into my own home.

“Chairman Dimon! It’s been a while since I saw you.”

I greeted Dimon warmly.

He quickly slammed the door! I closed it and was greeted.

“What kind of chairman are you among us? You may call me as you please.”

“Is that so? How is the GM acquisition going so well?”

“It’s a lot of fun to be able to utilize my field of expertise for the first time in a long time.”

Dimon was an expert in mergers and acquisitions.

I was especially enjoying this job because I was a person with a knack for cutting out rotten parts of failed companies and reviving them.

“How many rotten parts do you plan to cut off?”

“We plan to cut out and sell all unprofitable brands to reduce debt and then proceed with the acquisition. The acquisition cost is roughly around 40 to 50 billion dollars. How much can a fintech bank take charge of? If you want, we can take over half of it. It doesn’t matter either.”

The fintech bank spent a lot of money to acquire CITI Group.

Nevertheless, there was reason to say that it would use over $20 billion in acquisition funds.

This was because most of the funds held by SAVE Investment Bank were transferred to fintech banks.

In fact, the money coming from the fintech bank was my money.

This meant that all the money except Warren Buffett’s investment amount came from my own pocket.

“Berkshire will invest $5 billion. The remaining amount will be split half between Taewo Group and the fintech bank.”

“With $50 billion, we can acquire approximately 75% of the stake. Then, 8% of the stake will be handed over to Berkshire, and the remaining 67% will be split between Taewo Group and Fintech Bank.”

“Who will own the remaining shares?”

“Creditors will hold about 10%, and the National Automobile Workers’ Union will hold about 10%. The remaining shares are being distributed to various parties.”

Our share is 67%.

Even if I managed it the way I wanted, the stake was such that no one could say anything.

“The government has decided to help with the factory relocation issue, so consider selling the factory in an expensive area and moving the factory to a cheaper area.”

“Please leave that work to me. And we are receiving help from many sources regarding automation equipment. In particular, we are planning to install some automation equipment developed by Amazon at the factory.”

“Once automation equipment is in place, labor costs will go down significantly.”

“So we plan to increase the rate of restructuring a little bit.”

Dimon was painstakingly cutting out the rotten parts.

The day he finished cutting was the day he signed the contract.

It was also the day that GM finally came into the arms of Taewoo Group.