America: My Time

Chapter 168 The power of capital

Chapter 168 The Power of Capital
"No, impossible. Even if it's important, it's not as important as Sikorsky."

"This is just your opinion. In your eyes, Sikorsky is very important, but in John's eyes, it may not be so important. Sikorsky's assets may be higher than John's investment in China now, but is that really the case in the long run? Think about how big the Chinese market is, and think about the behavior of multinational corporations like Volkswagen. John's investment in China is incomparable to Volkswagen's. They offered such great benefits, how could John possibly turn a blind eye!"

"Yes, that's an unimaginable sole proprietorship. John is really daring. He actually made the decision not to transfer a single penny out of China for ten years. I believe none of you here would be willing to accept such a price. If the public had such determination, their cooperation wouldn't have dragged on for so many years."

"Alright, now we need to decide whether to wait two months before talking to that bastard John about the Sikorsky acquisition, or to send someone to China to talk to him. We need to make a decision quickly. That kid has already made contact with the Japanese bank, and Mitsubishi Bank personnel are ready to come to Shanghai. We must make a decision before they finish their negotiations!"

“Two months is too long. We don’t know what might happen. Sikorsky is important, that’s true, but it’s not necessarily John’s only option. There are other helicopter companies besides Sikorsky, and we can’t take the risk. If Morgan finds out we’re waiting two months, do you think they’ll give John a different option? In my opinion, we should send professionals to Shanghai to sign the contract with John!”

"Face! If we do this, where will we put our face?"

"What time is it? Are you still thinking about saving face? Is saving face more important than profit? This is US dollars, a lot of US dollars. We need to recoup our losses. Otherwise, if this continues, the company won't last long. And if this cooperation with John fails, we won't be able to explain it to Sikorsky. This is a deal we proposed ourselves!"

"Let's vote by raising hands. This isn't a decision one person can make; the minority must submit to the majority!"

Soon, everyone raised their hands, agreeing to send professionals to Shanghai to sign the contract with John, as they were all worried that things might change if the process dragged on. Morgan was no saint; if they put their efforts into it, they could definitely find other helicopter companies to sign with John! Actually, despite these old guys standing together now, none of them trusted each other, fearing that these guys might betray them after the talks, because betrayal wasn't impossible!

Just as these old guys had feared, Morgan was indeed waiting for them to make a decision. If Rockefeller chose to discuss the Sikorsky acquisition with John two months later, Morgan would immediately step in and find another helicopter company for John, and Hughes Helicopters would be a good option.

While there were some rumors circulating on Wall Street about Sikorsky's acquisition, the media was unaware that this time the old guard dared not resort to underhanded tactics and did not want to follow in Bell Labs' footsteps!

The next day, John's secretarial team received a fax from the United States informing them that Rockefeller had arranged for professionals to come to Shanghai to discuss the Sikorsky acquisition. Upon receiving this news, John's team breathed a sigh of relief and were all impressed by their boss's capabilities; to make Rockefeller bow down was something not everyone could do.

John was able to remain so calm about everything because he didn't only have Sikorsky as an option. What Morgan could think of, John had also considered: Hughes Helicopters would be acquired for $500 million the following year. If McDonnell Douglas could do it, he believed Morgan could too. Even without Sikorsky from Rockefeller, there was still Hughes Helicopters, but the allure of Sikorsky was greater; it was the king of general-purpose helicopters, with a much larger market share in both military and civilian applications.

All parties involved in the deal between John and Rockefeller were watching closely. When representatives from Mitsubishi Bank of Japan appeared in Shanghai, everyone knew the deal had begun. Rockefeller also had professionals on their way to Shanghai.

Such a large acquisition was decided in such a short time, and the three parties started talks. This surprised many people. The speed was too fast, especially in Shanghai. Look at the speed and attitude of the company. When they learned that John did not have time to go back to the United States or Japan, they took the initiative to come to his door. When will the companies they face have such an attitude? When will such good things happen to them?
During the meeting at the Shanghai Grand Hotel, John met with representatives from Mitsubishi Bank. Although they didn't know each other, the Mitsubishi Bank representatives recognized John. Upon meeting, the two Mitsubishi Bank representatives said, "Mr. John, hello, it's a pleasure to meet you. I am Matsumoto Ichiro and Oshima Masao, representatives from Mitsubishi Bank. We are here to discuss the loan with you!" "Mr. Matsumoto, Mr. Oshima, hello, thank you for coming all the way to Shanghai. I have already explained the purpose of this loan to Mitsubishi Bank, and I believe you understand. If my acquisition of Sikorsky is successful, the loan collateral will be Sikorsky. The interest rate has already been agreed upon. If you two have no objections, we can sign the contract tomorrow when the Rockefeller representatives arrive."

"We have no objections and will follow Mr. John's instructions!" The two representatives from Mitsubishi Bank adopted a very humble attitude. Before coming to Shanghai, they had already received authorization from Mitsubishi Bank and understood the situation of this cooperation. Naturally, they had no objections and dared not have any. If their ignorance ruined this cooperation, the consequences would be unbearable for them!

Although the secretarial team knew their boss had the highest level of credibility in Japan, they were still astonished by the humility and speed with which the Mitsubishi Bank representative handled things. It was too fast! In the US, this would take at least ten days to two weeks, or even longer. Was this the speed of Japanese banks?!

Actually, these people are overthinking it. While Japanese banks were indeed very efficient and meticulous in the 1980s, such speed wasn't something everyone could enjoy. John was able to do it because of his excellent reputation in Japan, the positive feedback from those he worked with, and the fact that he acquired a dual-use military and civilian company like Sikorsky, which carried virtually no risk. That's why they were able to move so quickly; if they had been slower, they wouldn't have had a chance.

The reactions from Mitsubishi Bank and Rockefeller alone demonstrate John's immense power. Seeing is believing; only by witnessing it firsthand can one truly believe. Although I had heard of John's abilities before, I had never actually witnessed them. Now, judging from Mitsubishi Bank's reaction, I know that John's reputation in Japan is truly exceptional.

"Has Morgan responded yet? What's the think tank's assessment of Sikorsky? Has the market value changed significantly?" Although John knew Rockefeller wouldn't tamper with such an acquisition, he still had to be careful!
"Boss, Morgan Stanley says there are no problems, and the think tank has also conducted an assessment. Sikorsky's market value has not changed, and everything is normal!"

This is the power of capital. The evaluation of Sikorsky was completed in just one day. This is not something that just anyone can do. The manpower and resources required are staggering.

"That's good. Tell Morgan that if everything goes well, Dreamworld and Nvidia will be raising funds when I return to the US in two months. I hope they are prepared in advance."

What does it mean for everything to go smoothly? Naturally, it means that the deal with Rockefeller goes smoothly. If the acquisition of Sikorsky cannot be completed, the financing will naturally have to be postponed. John doesn't need to say anything, and Morgan knows it too. This is also a constraint on those old guys!

"After this acquisition, you won't have to be so busy anymore. It'll be a long time before there are such crazy acquisitions. Next, we need to focus on integrating the companies. You can also take a vacation and relax!" Looking at his tired secretaries, John made a small promise to them.
John does need time to integrate the company. Although this series of expansions has increased assets, it cannot achieve the desired results before integration is complete. Moreover, the Sikorsky acquisition has also served as a reminder that he cannot continue to expand so recklessly, or he risks capsizing.

"I need to lower those old guys' attention to me. I can't let them keep staring at me like this, or I'm bound to make a mistake. If I get ambushed by those old guys, I'll pay a heavy price! I need to think of a way to divert their attention and stop them from keeping an eye on me. Maybe I should spend some money to make them lower their guard!"

How to squander money, however miserably, is a complex art. The key is to find a way to lower those old fogies' guard and stop them from watching you so closely, while still making a profit. After much thought, I decided to start with the Japanese. Soon, Japan will experience a massive economic bubble, and Japanese people will be out shopping all over the world. I need to find them excellent places to spend their money, catering to the needs of the majority. I need to target not only the wealthy but also the middle class, who are also a major sales force with astonishing purchasing power.

(End of this chapter)