Chapter 1014: I Do Not Fear Competition
We spent quite some time negotiating the contract terms.
The assets we were acquiring were divided into three parts:
The North American division and its related assets.
The Europe and Middle East division and its related assets.
And the Asia-Pacific division and its related assets.
Negotiations were proceeding separately for each of those three sections.
At that moment, the conference room door suddenly opened.
Everyone turned toward it.
"As-salamu Alaikum!"
A group of unfamiliar men dressed in traditional Middle Eastern clothing walked in.
One of them stepped forward.
Then, someone completely unexpected appeared behind him.
David Rockefeller.
For a moment, I thought I was seeing things.
One of the key figures of Baltice had come here in person?
His presence alone made it obvious that Saudi Arabia's appearance was part of Baltice's plan.
"And you are?"
Bryan Marsal asked in surprise.
The Middle Eastern man introduced himself.
"We are representatives of Saudi Aramco. We are interested in acquiring Lehman Brothers."
David Rockefeller stepped forward and continued.
"And I am David Rockefeller, serving as an advisor for this transaction."
At the mention of the Rockefeller name, Marsal's eyes widened even further.
"Could it be... the Rockefeller family?"
"Yes. I am currently the head of the family."
"..."
Marsal glanced at me awkwardly.
But I didn't even have the presence of mind to care.
My thoughts were racing.
This was completely unexpected.
How on earth had they found out about this meeting?
And why were they suddenly trying to interfere with the deal?
Countless possibilities flashed through my mind.
Jamie Dimon nudged me in the side, pulling me back to reality.
Looking flustered, Marsal said,
"But the acquisition agreement is already nearly finalized."
The Saudi representative smiled.
"Until the contract is signed, anything can change, can it not? We can offer better terms. Five billion dollars for the North American division, five hundred million dollars for the Europe and Middle East division, and three hundred million dollars for the Asia-Pacific division. A total of 5.8 billion dollars, payable immediately."
David Rockefeller added,
"Furthermore, backed by the Middle East's enormous financial resources, we can guarantee the recovery and future growth of Lehman Brothers' global business."
His voice and gestures radiated confidence.
The conference room immediately became restless.
Marsal fell into deep thought.
Hope returned to Dick Fuld's face.
Beside me, Dimon couldn't hide his discomfort.
Even then, I calmly analyzed the situation.
The alliance between Baltice and Saudi Arabia undoubtedly meant far more than a simple acquisition.
Their partnership was the last thing I wanted to see.
Looking at Marsal, I said,
"Mr. Marsal, could you give us a few minutes? I believe we also need to review our proposal."
Marsal nodded.
I exchanged a glance with Dimon, and we headed out of the conference room.
As I passed David, he quietly whispered,
"Give it up. Unless you want to make an enemy of the Saudi royal family."
Ignoring his warning, I walked outside.
In the hallway, I turned to Dimon.
"Jamie, what do you think?"
With a serious expression, he answered,
"Saudi Arabia's offer is very attractive. From Marsal's perspective, he'll naturally want to sell to whoever offers the highest price."
"Exactly. If they take the entire business, my entire plan falls apart."
"Then perhaps we should play a different card. We can't win °• N 𝑜 v 𝑒 l i g h t •° with a simple bidding war. Even if we do, we might end up suffering the winner's curse."
His point was valid.
Of course, I was confident we could outbid them.
But I still couldn't tell whether Saudi Arabia genuinely wanted Lehman or whether they simply wanted to force me into paying an outrageous price.
Blindly raising our bid wasn't the answer.
After a brief moment of thought, I spoke.
"Let's raise the price. Five point five billion dollars for North America, seven hundred million for Europe and the Middle East, and four hundred million for Asia-Pacific. A total of 6.6 billion dollars."
Dimon nodded.
"On top of that, Charlie... how about adding your vision?"
"For example?"
"The regional synergies. Job guarantees. Future investment plans."
It was an attractive suggestion.
Instead of simply fighting over an irresistible prize, presenting a vision for the future naturally carried far greater persuasive power.
"Tell me in detail."
"Well..."
Dimon began outlining his proposal.
From time to time, I interrupted to suggest improvements, and we refined the idea together.
About ten minutes later, Dimon smiled.
"I think this proposal creates the impression that we're considering not just money, but the entire global financial system. It also subtly highlights the limitations of the Saudi proposal."
"Excellent. Let's go with that."
We returned to the conference room.
Apparently, quite a bit had happened while we were gone.
The Saudi representative and David were now seated beside Dick Fuld.
After sitting down, I addressed Marsal.
"Mr. Marsal, we'd like to revise our proposal. Five point five billion dollars for the North American division, seven hundred million for Europe and the Middle East, and four hundred million for Asia-Pacific. A total of 6.6 billion dollars."
"Is that true?"
"Yes. Now that a competitor has appeared, we can't stick to the old price."
David's gaze immediately sharpened.
Ignoring him, I continued.
"In addition, we'd like to present a comprehensive package."
"A comprehensive package?"
"Yes. We will guarantee Lehman Brothers' employees' jobs for at least two years. Over the next five years, we will also invest an additional ten billion dollars into the global financial market. Finally, by creating synergies among the regional divisions, we'll build a global network worthy of the Lehman Brothers name."
Marsal's eyes widened.
The Saudi delegation and David Rockefeller looked visibly uncomfortable.
"Furthermore, together with JPMorgan, we will develop new financial products utilizing Lehman's assets, contributing to the recovery of the American economy. This is not merely an acquisition. It is an investment in the future of American finance—and, beyond that, the future of global finance."
"An impressive proposal. Charlie's offer clearly considers the American financial system as a whole, rather than simply focusing on the purchase price."
At that moment, David interrupted.
"However, our proposal can also greatly contribute to global competition. Saudi Arabia's financial strength can become the driving force behind the rapid recovery of the world's financial markets."
I'd literally just explained that this wasn't simply about pouring money into the market.
I immediately countered him.
"Mr. Rockefeller, financial crises cannot be solved simply by injecting capital. We're building a financial network that extends beyond America and encompasses the entire world. In the long run, it will create a far more stable and efficient system."
"No..."
Cutting David off, the Saudi representative spoke.
"Then we'll raise our offer as well. Six billion dollars for the North American division, one billion for Europe and the Middle East, and seven hundred million for Asia-Pacific. How does that sound?"
It was practically a proposal to bury everything under mountains of cash.
Both Marsal and I widened our eyes simultaneously.
"Well? What do you think of our proposal?"
"May I hear your plans afterward?"
In response to Marsal's question, the Saudi representative answered,
"We haven't prepared anything specific yet. But with Aramco's financial resources, we can invest far more than what this gentleman has proposed."
His tone and expression overflowed with confidence.
After hearing that answer, Marsal's expression grew even more troubled.
A few moments later...
"Would everyone please step outside for now? I'd like to speak privately with Chairman Dick Fuld."
Dimon and I stood first.
The Saudi delegation and David followed.
Out in the hallway, neither side approached the other.
We simply watched one another.
"Jamie, what do you think will happen?"
"Dick Fuld will naturally favor whoever offers more money."
I clicked my tongue unconsciously.
Dimon chuckled softly before continuing.
"But Marsal will think differently. As long as all authority remains in his hands, Fuld can't do anything."
"I hope you're right."
While Dimon and I were talking, David walked over.
"Chairman Dimon. It's been a while."
"Indeed, Mr. Rockefeller."
It was obvious they already knew each other.
But David wasn't interested in Dimon.
His target was me.
"So, Charlie. This is our first meeting, isn't it?"
Since when did we become close enough for you to speak so casually?
And Dimon clearly looked much older than he did...
"So you're the head of the Rockefeller family?"
"I am."
"I see. Then what exactly did you expect to gain by coming all the way here? This hardly seems like the sort of time when you should be serving as someone else's advisor."
"What?"
"You ought to worry about putting out the fire at your own feet first. Ah... did you rush here because if Lehman collapses, your people won't come out unscathed either?"
As I casually poked at the situation he found himself in, a vein bulged on David's forehead.
"A young man like you has no manners..."
"The one lacking manners is you. Anyone can see that Chairman Dimon is older than you, yet you speak to him as if he were your subordinate."
David stared at Dimon in disbelief.
Dimon quietly avoided his gaze.
"You should head back. Is there really anything left for us to discuss? Just wait a little longer. One day, I'll be the one coming to find you, David Rockefeller."
I completely dismissed him.
David seemed about to say something but instead turned and walked back toward the Saudi delegation.
Even his stride made it obvious how furious he was.
Watching him leave, I asked Dimon,
"Have you met David Rockefeller before?"
"Years ago. Let's just say... it wasn't a pleasant meeting."
Judging from his reaction alone, I could imagine as much.
I nodded.
A short while later, the door opened.
"Please come in."
We returned to our seats.
The first thing I looked at was Dick Fuld's face.
It was filled with dissatisfaction.
"After careful consideration, we've decided to proceed with the sale to JPMorgan and Dreamhigh."
David immediately objected.
"We offered a higher price. Yet..."
Marsal firmly shook his head.
"I'm sorry, but this transaction isn't simply about the amount of money involved. We must also consider the stability and future of the American economy. Gentlemen from Saudi Arabia, Mr. Rockefeller... I'm sorry, but this transaction will proceed with Charlie's group."
The Saudi representative looked at Marsal quietly before speaking.
"We can offer an even higher price."
That was when I stepped forward.
"I do not fear competition. But if that competition has no future for Lehman at its end, then it's meaningless. If you truly wish, I'm prepared to wage a war of money."
The Saudi representative looked directly at me.
I didn't avert my eyes.
After several long seconds of staring at one another, he finally stood up.
"I see. It appears this trip was unnecessary. We'll withdraw."
The Saudi delegation accepted the outcome so readily that I couldn't help feeling puzzled.
I asked almost involuntarily,
"...You're leaving just like that?"
The Saudi representative nodded before calling out,
"Mr. Rockefeller. This is nothing like what you told us. I'll be reporting this directly to the Chairman."
"Yasir!"
"Come. A true gentleman knows when it's time to withdraw."
After saying that, the Saudi representative smiled at me.
"Charlie, I've heard much about you. I hope next time we'll have an opportunity for a more in-depth conversation."
"Anytime."
We shook hands.
After the Saudi delegation left, David glared at me.
"Charlie, don't think you've won. This isn't over. We'll find another way."
I simply shrugged with a faint smile.
His face turned even redder.
"Mr. Rockefeller. Would you please leave now?"
Marsal's dismissal was the finishing blow.
David ground his teeth before finally walking out of the conference room.
"Now then... shall we incorporate those terms we discussed into the contract?"
Marsal said with a smile.
At last, the core divisions of Lehman Brothers' business were about to fall into my hands.