Chapter 1480: Equity of Rothschild Investment Bank

'Peter, this risk can be avoided.'

'We have to use our capital wisely now, so we can use a capital increase in exchange for shares to go about the merger and acquisition.'

Gianni Agnelli exhaled a smoke ring and said with a smile.

The meaning of this method of merger and acquisition is clear from the literal meaning.

The acquiring company uses the issuance of new shares to replace the target company's shares in order to achieve the purpose of the acquisition.

The advantages of this method of M&A are obvious. It does not require the payment of large amounts of cash, so it does not squeeze the company's working capital, effectively reducing the financial pressure on the acquired company, and of course there is no need for shareholders to inject capital.

This method of M&A is very suitable for mergers and acquisitions between giants.

However, there are also disadvantages.

The most direct one is that the newly issued shares change the equity structure of the merged party, leading to a 'dilution' of shareholders' equity, which may cause the original shareholders to lose control of the company.

Therefore, Peter Wallenberg questioned: 'Even if the market value of these institutions has been reduced due to their weakened strength, they are still top-notch institutions. Merging in this way will have a huge impact on our original company.'

'Our original company is still doing well. Don't let the enemy enter our company directly after the merger, that would be troublesome!'

At this time,

Jacob Rothschild promptly spoke up in rebuttal: 'Peter, your considerations are indeed valid, but I don't think you would make such an irrational choice.'

'The Wallenberg family has a lot of assets and should be able to select a suitable company for the merger.'

'Moreover,'

'we should all be able to carry out internal asset restructuring to avoid this risk.'

The other few people nodded slightly in agreement.

Peter Wallenberg frowned, hesitated for a moment, and then gave up arguing.

'Okay, Jacob, you're right.'

Having convinced Peter Wallenberg, Jacob Rothschild looked at the others again. Seeing that no one else had any other comments, he smiled and said, 'Then let's discuss the specific implementation plan.'

'After all, there are more than twenty institutions affected...'

...

In fact.

The defeat of the attack on Hong Kong has had an increasingly severe impact on many European financial institutions over time.

Investors in these institutions have been losing money after the Bright Fund's dividend and fundraising, and the core executives of S.G. Warburg have revealed the truth.

While trying every means to reduce capital loss and stabilize investors, the management of these institutions are also faced with hostile takeovers and attacks from their enemies every day, and they are extremely busy.

That afternoon, Steve Calvin had just finished a senior management meeting when he received a call from Jacob Rothschild. After a conversation, he was exhausted and hurriedly drove to the Rothschild family castle on the outskirts of London.

Half an hour later, Steve Calvin met with Jacob Rothschild.

'Mr. Jacob, what is the solution you mentioned?'

Without even sitting down, Steve Calvin asked in a hurry, his eyes fixed on Jacob Rothschild.

In the past twenty days, he hadn't slept well, often waking up in the middle of the night.

The immense pressure had made his already almost completely white hair lose its golden colour, and the wrinkles on his face had doubled, as if his facial muscles had lost their elasticity.

This appearance, so different from just over a month ago, made Evelyn Rothschild beside him unable to help but remain silent.

'Mr Steve, sit down and talk,'

After Jacob Rothschild invited him to sit down, he asked concisely, 'Mr. Steve, now that Cerberus Capital is facing a hostile takeover by Morgan Stanley, do you know how much equity they have acquired so far?'

Steve Calvin remained silent for a long time, shook his head and said, 'I have already asked someone to investigate, but it is difficult to find out the result.'

'But I just spoke to all the major shareholders this morning, and if they haven't deceived me, then Morgan Stanley has successfully acquired no more than 15% of the shares.'

Jacob Rothschild nodded slightly and said after a moment's thought, 'But as far as I know, there are already a number of major shareholders who have not explicitly rejected Morgan Stanley.'

Steve Calvin's face fell, and he felt both anger and powerlessness. He said in a low voice, 'Maybe.'

Thibault Ross Capital was established by his father and partners, and later passed to him. Now the Calvin family only holds 21.47% of the company's shares.

This shareholding ratio is actually relatively high among financial companies.

With the Calvin family's prestige, they can also gain the support of other shareholders and achieve control of Thibault Ross Capital.

But in the face of the overlord Morgan Stanley, it's a different story.

Not to mention that the company had just suffered a painful defeat under his leadership.

'Mr. Jacob, please state your thoughts directly.' Steve Calvin, who was in a terrible mood, didn't want to talk about useless things anymore. He looked directly at Jacob Rothschild and said in a deep voice.

Jacob Rothschild said slowly, 'We are willing to be the white knight.'

Steve Calvin's face changed drastically, his eyebrows furrowed, and he stared at Jacob Rothschild, anger rising in his heart.

'You also want to swallow up Cerberus Capital!'

When he received the call from Jacob Rothschild, he had high expectations, and on the way here, he kept speculating about what help the Rothschild family might offer him.

Unexpectedly, this 'help' turned out to be an acquisition!

This is really ridiculous!

Seeing Steve Calvin's anger, Jacob Rothschild's face became solemn, and he said seriously, 'Mr. Steve, we are not the same as Morgan Stanley!'

Steve Calvin sneered, 'In what way?'

'The price?'

'Or will I still be allowed to run the company after the takeover?'

After saying this, he leaned back on the sofa and just looked at Jacob Rothschild, wanting to see what kind of reason he could come up with.

Jacob Rothschild looked at him sincerely, 'Are you willing to walk away from the company you and your father have worked so hard for with a sum of money?'

Steve Calvin didn't say anything, but his mood had calmed down. He could hear the difference in Jacob Rothschild's words, and he was willing to continue listening.

'Morgan Stanley's acquisition of Theros Capital will definitely find a way to remove the traces of your Calvin family, otherwise John Chris Morgan will not be at ease.'

'So if they really succeed in a hostile takeover, you only have two options: either take a sum of money and walk away, or you will hold a stake and be slowly squeezed dry.'

'But we're different. I won't insult you with money.'

'If you accept our offer, the shares you hold will become even more valuable, and your influence will only grow stronger.'

'Because!'

'You can choose to exchange your shares for shares in Rothschild Investment Bank!'

As soon as Jacob Rothschild finished speaking, Steven Calvin immediately sat up straight, his face full of disbelief.