[Chapter 758: Capitalists Don't Have Good Intentions]
Some had once said that America was a relatively closed society. When you closed the door at home, generally, no one would bother you.
Let's not even mention finding a few girlfriends, even if you managed to have a couple of wives, it wasn't a big deal. As long as you weren't committing fraud, everything would be fine. After all, there was a sect in America, the Mormons, who, despite the laws prohibiting polygamy, still maintained a practice of having multiple wives.
When Utah became a part of the United States, other states had laws that were perfectly fine, but polygamy was something that Washington would never accept, no matter what.
If it were to be recognized, wouldn't the wealthy go crazy with joy?
However, public figures could not get away with that. You could indulge in your vices, but if you crossed a certain line, well, that could lead to some serious troubles.
MJ had been wronged; nowadays, Americans often separated MJ from his music whenever they discussed him.
Look at that -- it was just so pretentious.
"Sir, John Morgridge wants to see you."
"Ha, that guy. Alright, Filson, set it up, do you know what it's about?"
"No specifics, but Cisco's floating shares are decreasing. If I estimate right, it could mean either an increase in capital, or..."
"Ha, or maybe I will just sell off some of my shares. Well, it's good to hear what he has to say anyway."
Filson's face showed a similar concern. It was one thing for them to actively reduce stakes; it was another entirely if the management had other ideas.
Morgridge was not a simple character; he had already kicked out the founding couple from Cisco. Was he planning for an MBO (Management Buyout)?
If that was indeed the plan, he was thinking too highly of himself. William White, a major shareholder, directly and indirectly controlled 30% of the shares -- that was no small number.
Of course, this proportion was not invincible. If a strong outside figure showed up, there might still be a chance.
The catch was whether it was necessary to go to war with William White for a relatively small company. Cisco could be quite substantial in the future, but how could one be certain?
...
"Mr. Morgridge, is it just you coming? I thought Don Valentine might also show up."
Seeing William White directly cut to the chase, John Morgridge was slightly taken aback. It wasn't hard for William White to guess his objective, but asking about it outright was somewhat out of the ordinary.
"Ahem, Mr. White, as you know, the company has been developing smoothly recently, and I'd prefer to avoid any bumps in the road."
"There won't be any bumps. I control roughly 30% of the shares, more than Sequoia Capital. If needed, we can go private and delist. By the way, you can tell Don that I'm willing to acquire all of his shares at a 50% premium. How much does he have left -- 15% or 20%? Doesn't matter; I'll take it all."
Under normal circumstances, William White was easy to talk to. However, that depended on the context, and he certainly didn't need to show favor to someone who wasn't part of his company.
Morgridge could no longer remain calm. Clearly, their previous estimates were off. William White's shares were not just 25%.
William White understood the game that venture capitalists played. He had been quite displeased when they had chased off the founding couple, but out of a desire not to intervene too much, he had chosen to stay silent.
Now, someone actually seemed to be considering taking it a step further.
"Mr. White, Mr. Valentine merely seeks to introduce a third-party investor. Ahem, I personally do not wish for any changes."
"Has that old man gone mad? Who gave him such confidence?"
"There are plenty of interested companies -- Citigroup, Goldman Sachs, Morgan Stanley."
"Ha! No need to complicate things. Let's just go private and delist first. Mr. Morgridge, let me confirm, will you continue helping me?"
"Certainly?!"
"Alright, Filson, issue the tender offer and apply for a temporary halt in trading."
"Sure thing, sir."
Filson was also bewildered. He wasn't entirely sure what was going on; the boss hadn't planned this just yesterday. What had changed?
Of course, things had indeed changed -- some foolish investors had made a careless mistake. When had William White needed to care about Citigroup? Since Valentine didn't plan on continuing as chairman, he could just get lost.
...
After Morgridge left, Filson finally snapped out of his haze.
"Sir, what's happening?"
"Last night, someone saw Don Valentine in a secret meeting with Citigroup executives. The two old geezers, while enjoying themselves, clearly forgot that there might be ears listening on the other side of the wall. Since Sequoia wants to play, I will join the game. Find out what projects they're involved with. I need the details."
"Got it, I'll look into it right away."
"Also, sell off the remaining gold in London."
Filson realized there was no point in trying to persuade him otherwise. William White had an old grudge with Citigroup, and this incident would likely not end easily.
...
"No way, Andy, where did this news come from?"
"Sir, the White Fund has taken a stake and demanded an emergency shareholders meeting."
"Geez, Sequoia has lost its mind. What right do they have to challenge William White? Who is backing them?"
"Sir, it should be Citigroup. But Sequoia is in trouble this time; William White is cleaning house. It's not just Cisco; things have really escalated."
"Damn it, get me Goldman Sachs on the line."
Such a lively affair had not occurred on Wall Street in a long time, and the old folks at Morgan Stanley were naturally excited. The stagnant financial market had finally become entertaining again.
As for who would be unfortunate, he didn't care. After all, in this world, there was money to be made, and that was all that mattered.
...
"Gold market fluctuations? Citigroup getting short-sold?" A confused Soros stared blankly; the reports coming in from his aides left him utterly shocked.
What the hell? Was there a battle going on somewhere?
"Yes, sir, the news is all over the place, and we have no idea what is actually happening."
"Then let's take it one piece at a time and see what connections there are."
Suddenly, Wall Street was buzzing, watching stocks soar and plummet; a frenzy erupted among stockbrokers.
Uncertainty was the worst nightmare even in the face of a predictable American financial disclosure.
Ahem, it was because things had been a mess for so long. If they didn't change, there might be no fools left to buy stocks.
So, considering there was no news, something suddenly happening caught everyone off guard.
Investors really had very few good options; if there were no paper losses, the smartest choice was to temporarily retreat. Everyone knew chasing after rising stocks and abandoning losing ones was foolish; however, wasn't investing itself often about chasing gains and cutting losses?
If everyone were Buffett, the NYSE would never have such high trading volumes.
...
"Damn it! Get moving on the repurchase."
"Sir, we've already repurchased 300 million, but the selling pressure is still immense. The prior increase was a bit excessive, and now we are facing massive short-selling..."
The head of Citigroup was furious; he had just landed from a flight and was greeted with a sudden blow. By the time he finally figured out the reason behind it all, the other side had already begun cleaning up the battlefield.
...
"Charlie, what do you think?" The short-term fluctuations were of little concern to Buffett himself. However, he still needed to understand the exact reason behind it.
"Well, Warren, this is typical William White behavior. But this matter won't be resolved quickly."
"Oh? Why do you say that?"
"Right now, selling off gold doesn't make much sense. William White has had some tight positions recently, but there's no need for such a big show."
"Ha! Is he raising funds? Ugh, what a hassle. At this rate, I think Citigroup's CEO should just pack it up. If you know he's short-tempered, why would you keep provoking him?"
*****
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