Come on 217, hurt each other

Wei Dongsheng did not continue this topic, and the topic suddenly returned to the original interest negotiation: "I have two acquisition plans."

Fuld immediately focused his attention: "Please speak."

Wei Dongsheng: "The first plan is to buy 30% of Lehman Brothers shares for US$12 billion; the second plan is to buy 40% of Lehman Brothers shares for US$16 billion."

Fuld was stunned.

Wei Dongsheng’s offer was incredibly good. No matter which scheme, Lehman Brothers was valued at US$40 billion.

A few days ago, Finance Minister Paulson’s attitude was not firm, AIG has not yet reported the risk of collapse, Lehman Brothers still has government-government rescue hopes, and Korea Development Bank was only willing to value Lehman Brothers at US$24 billion. 100 million US dollars to acquire 25% of Lehman Brothers shares. At that time, Fuld felt that the Korea Development Bank's price was too low, and he could expect from holding British Barclays Bank and Bank of America, so he simply and rudely rejected the Korea Development Bank's negotiations.

As for the Rose Fund, Fuld has a worse impression. The price of the Rose Fund is slightly higher than that of the Korea Development Bank. It is only valued at US$25 billion by Lehman Brothers, but it always delays time with details. The Lehman Brothers negotiation room seems to be a leisure playground for the Rose Fund negotiation team, which is even less reliable than the Korea Development Bank. Fortunately, Fuld did not know that Gong Qiuqiu's price of $25 billion for Lehman Brothers was taunting him. Otherwise, Fuld would have already angrily rejected the deal.

Due to AIG variables, Lehman Brothers came to the brink of bankruptcy on September 14.

Lehman Brothers has nowhere to go.

In Fuld's imagination, the Rose Fund should open up the lion's mouth and take the opportunity to acquire more equity with less funds. Unexpectedly, Wei Dongsheng not only did not take the momentum to lower the price, but generously increased the valuation to 40 billion US dollars.

This is very unexpected.

Fuld believes that Lehman Brothers is worth 50 billion U.S. dollars, and quotations below 50 billion U.S. dollars are meant to cut meat. Unfortunately, now and then, it is very rare for Wei Dongsheng to value Lehman Brothers at $40 billion on the verge of bankruptcy. Except for the generous Wei Dongsheng, no one would value Lehman Brothers at $40 billion. Considering Lehman Brothers' urgent need for cash flow, Fuld reluctantly ceded more equity: "I choose the second option."

Wei Dongsheng: "Don't you question whether I have $16 billion?"

Fuld changed color in horror: "What do you mean?"

Wei Dongsheng: "The Rose Fund’s initial capital was about US$2 billion, and then it absorbed US$8 billion in high-end customers. Even so, the total capital of the Rose Fund was only US$10 billion. Although the vacancy loan market has made a lot of paper profits, a lot of money To guarantee the performance of the short-selling contract, only US$4 billion in cash can be drawn at present."

Fuld's eyes were sharp: "US$4 billion will not save Lehman Brothers."

The funds of financial institutions are short-term deposits, and the loans are long-term loans. Take housing loan as an example. The owner obtains a house from the bank with a loan, and the bank pays the purchase price to the developer in full, and then the owner pays the mortgage to the bank on a monthly basis. The mortgages borrowed by banks are the net assets of the bank, the principal of the home loan of the owner is the bank's assets, and the interest of the owner's mortgage is the profit of the bank. But if the owner suddenly ran out of money and could no longer pay the subsequent mortgage, the mortgage previously lent by the bank would become a bad debt, and the securities made up of the mortgage would instantly be worthless.

Lehman Brothers’ fixed assets are actually very impressive, which is why Fuld refuses to sell at a low price. The so-called insolvency of Lehman Brothers refers to the undervaluation of all its bonds under the background of the economic crisis. At the same time, the loss caused by excessive leverage far exceeds the liquidity. If Lehman Brothers has enough cash to make up for the capital write-down loss, and the real estate market picks up, then all problems will no longer be a problem.

Lehman Brothers needs cash, and only cash.

Lehman Brothers needs a lot of cash.

A mere US$4 billion is a drop in the bucket.

Wei Dongsheng ignored Fuld's questioning: "I will not give you $4 billion."

Fuld instantly lost his smile: "So, you came to make me happy?"

Wei Dongsheng signaled Gong Qiuqiu to hand over a contract to Fuld: "Merrill Lynch owes Rose Fund 3 billion U.S. dollars, and our Rose Fund can transfer Lehman Brothers at a price of 2.4 billion U.S. dollars. Of the 2.4 billion U.S. dollars, 600 million U.S. dollars is returned to the Rose Fund. US$1.8 billion was used to acquire shares in Lehman Brothers. In other words, Lehman Brothers can get US$600 million in profits and US$1.8 billion in financing from this US$3 billion contract."

Fuld has eased his attitude: "This contract is not worth $3 billion."

Wei Dongsheng told the truth: “In Rose Fund’s hands, it is indeed not worth US$3 billion. In fact, Bank of America and Merrill Lynch are asking Rose Fund to discount this contract to US$300 million in the name of asset restructuring. Rose Fund takes Bank of America and US Lin has no way, but I believe Lehman Brothers has a way, you have the ability to restore this contract to its original value."

Fuld did his part not to show his ability: "Yes, I can. If this contract is in the hands of Lehman Brothers, I can ask Bank of America to spend $3 billion tomorrow."

Wei Dongsheng laughed and said: "Bank of America and Merrill Lynch pushed Lehman Brothers into the abyss, and Bank of America and Merrill Lynch wanted to ignore the contract spirit and relinquish the Rose Fund's 3 billion US dollars. We all have enemies with them, why not unite to fight them? "

Fuld gripped the copy of the contract with his right hand, and stared at Wei Dongsheng sternly: "How many such contracts does the Rose Fund have?"

In the negotiation room, Gong Qiuqiu handed Fuld one contract after another: "This contract is for Bank of America, $3 billion; this contract is for JPMorgan Chase, $2 billion; this contract is for Goldman Sachs, $5 billion U.S. dollars; this contract is for Morgan Stanley, $3 billion...All well-known financial institutions on Wall Street owe us money."

Looking through the contracts one after another, Fuld's eyes brightened.

More than ten minutes later, Fuld raised the price: "30% off, Lehman Brothers bought all short contracts at 30% off."

Bank of America, JP Morgan Chase, Merrill Lynch, Goldman Sachs, and Morgan Stanley have tacitly united to boycott the shorting of Rose Funds, and almost all contracts have been reduced to one-tenth to two-tenths. Under such a background, it is profitable to sell a 30% discount to Lehman Brothers, let alone a 30% discount? Wei Dongsheng nodded immediately: "Yes."

Fuld raised the price again: "The Rose Fund acquired a 30% stake in Lehman Brothers at a valuation of $50 billion."

Wei Dongsheng could not let Fuld be too presumptuous, and decisively attacked: "40%."

Fuld insisted: "30%."

Wei Dongsheng was too lazy to bargain prices with Fuld: "40%, otherwise I will cancel the negotiation."

Fuld picked up the contract in his hand: "Are you willing?"

Wei Dongsheng shook his head: "The problem is not that I am willing to be willing, nor is it 30% or 40%, nor is it that the valuation of 40 billion US dollars or 50 billion US dollars, but your attitude makes me feel insincere. Lehman Brothers are no better than Merrill Lynch. The Rose Fund’s short contract against Lehman Brothers was also unwilling to pay the original price. If your character is not credible, after Lehman Brothers has survived the crisis, it will definitely be another dispute. ."

Fuld decisively stopped raising the price: "Please trust the credibility of Lehman Brothers."

Wei Dongsheng: "The credibility is made, not out of words. Your prestige and respectful performance made me feel less sincere."

Fuld changed to a sincere attitude: "However, 40% is really too much."

Wei Dongsheng put forward a new condition: "The Rose Fund does not pursue convertible equity, it will not be included in the total share capital of Lehman Brothers before maturity, and there is no need to force conversion into stocks after maturity."

Fuld pondered for dozens of seconds and gave the answer: "Good!"

In this way, on the surface, Rose Fund acquired 40% of Lehman Brothers shares for US$20 billion, but in fact it is dumping the precise short contract that cannot be fully realized to Lehman Brothers. However, these contracts will only be realized gradually in the next few months, and the Lehman Brothers financial chain rupture crisis cannot be eliminated in a short time. In order for the Lehman Brothers ship to continue to operate, Fuld must find a new source of funding as soon as possible to resolve the upcoming crisis of tomorrow.

However, this is not a problem. In order to avoid business paralysis after Lehman Brothers goes bankrupt, Lehman Brothers' brokerage and trading department is not covered by the bankruptcy protection application. The Fed had hoped that this sector would continue to exist, even if it could only survive for a few days, so it had prepared $45.5 billion for it through the special loan channel to investment banks. Lehman Brothers can misappropriate this fund for temporary turnover. As a result, there has been a recent capital flow of 45.5 billion US dollars. With the Rose Fund short contract financing in the future, Lehman Brothers management gradually has a little confidence in the future.

Of course, this is not enough.

In order to avoid the stock price plummeting after the market opens tomorrow, Lehman Brothers needs more good news.

Through Fuld's channel, Wei Dongsheng urgently contacted US Treasury Secretary Paulson. Paulson was so exhausted that his eyes were bloodshot. Just as Wei Dongsheng had a commercial smile, Paulson had eagerly asked Wei Dongsheng for verification: "The Rose Fund has decided to invest US$20 billion to acquire Lehman Brothers?"

Despite the so-called short-selling contract from all sources of financing, Wei Dongsheng still boasted that he was actively participating in the rescue: "At the opening ceremony of the Olympic Games, I promised you that the Rose Fund is not short-selling for short-selling, and it will definitely cooperate with the US government-government rescue. I have always said it must Yes, if we say that we cooperate with the US government to rescue the market, it will cooperate with the US government to rescue the market."

Paulson grinned: "This is the only good news I heard today."

Paulson immediately laughed at himself: "With the Rose Fund's acquisition of Lehman Brothers, public opinion should no longer say that I will continue to serve Goldman Sachs in the position of Secretary of the Treasury."

Wei Dongsheng smiled and made a polite sentence with Paulson, and then Dao Ming came: "The Rose Fund has fulfilled its promise, should Wall Street also show goodwill to the Rose Fund?"

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