Chapter 155: The Acquisition Begins (Part 2)

[Chapter 155: The Acquisition Begins (Part 2)]

The early spring sun shone brightly.

As Clement Freddy stepped out of his car and walked into his company, he noticed his attractive secretary gliding towards him, whispering, "Mr. Ian Carr is waiting for you in your office."

Ian Carr?

Clement Freddy paused for a moment but nodded and replied, "Alright."

He hurried to his office, where he found Ian standing before his potted orchid, deep in thought.

"Hey, Ian, what brings you by today?" Clement asked with a grin as he settled into his chair.

Ian, hands in his pockets, didn't turn around but gazed outside at the scenery.

He replied in a flat tone, "I'm here to buy your three percent stake in Lino Bank."

Clement was taken aback. "What?"

Ian slowly turned to face him, maintaining a cool demeanor, "Just as you heard."

Clement shook his head lightly. "I don't have plans to sell right now."

Ian smiled. "Lino Bank made only $240 million last year, with $130 million in dividends. Considering its assets now total $2.5 billion, the return on investment is too low. What else could you do with that money that's better than owning a bank?"

Bank margins were still relatively substantial, managing $40 billion in assets, which theoretically could yield over a billion in gross profit, not to mention various financial derivatives.

The issue was that a portion of that money had to be reserved, which wouldn't earn any profit, and a part was operational costs.

But the biggest concern was bad debts.

Once bad debts occurred, the losses could be massive.

For that reason, bank profits varied greatly -- when fortune favored them, net gains from just interest could reach $600 million or $700 million; when it didn't, they faced severe losses.

Lino Bank's revenue last year was mediocre, with a return on investment of only 10% -- Gaskill's shorting profits had nothing to do with the bank.

This was partly because the U.S. was in a high-interest-rate era.

With high benchmark rates, the operational costs and risks for businesses increased, which somewhat suppressed banks' profits, but it wouldn't be long before rates came down.

At this moment, Clement replied, "But I can secure loans through Lino; real estate companies need financing."

Ian shook his head. "If your project is absolutely profitable, you wouldn't need to worry about getting loans. Besides, I am already a shareholder of Lino... I hold 8% of the shares! Your 3% doesn't hold enough influence."

Clement looked surprised and then shook his head gently. "Ian Carr, sometimes it's about connections in business. I've been with Lino for years; I have many friends there who will support me! You, on the other hand, come off as a brute charging in, and they won't take kindly to you."

Ian looked down with a smile. "Brutes aren't usually liked, but sometimes being a brute is quite effective!"

He pulled out a document and handed it to Clement. "Take a look at this."

Clement took it, glancing over the content, and his expression suddenly changed. "What the hell? Where did you get this information?"

He looked at the photo in disbelief; it was a picture of a worker who had died over six months ago, but he hadn't died from a fall -- he had been stabbed.

That wasn't surprising, as during the incident, someone on his team had mentioned staged evidence, but Clement had chosen to handle it as an accident because he didn't want his site shut down.

Little did he expect Ian would have that photo.

Ian looked at him with disdain. "A worker died on your site, and your handling of it was rather hasty. That guy, Bartram, wasn't an accident; it was murder! And you hid important evidence!!! But unfortunately for you, you're now facing someone who excels at uncovering secrets..."

Clement shouted, "I can't shut down; do you know how much a day of shutdown costs?"

"That doesn't concern me," Ian scoffed. "All I know is you concealed a murder case. If I leak this, do you know the consequences?"

He looked at Clement with pity. "I could buy your shares at $3 billion, which is a generous offer."

Clement glared at Ian fiercely. "Acquiring a profitable company demands a premium."

Lino Bank, despite its lesser profits last year, was still a profitable enterprise -- especially since the finance and media sectors had vast hidden profits.

A bank could have a profit margin of only 10% in a year, but hidden profits could surpass that figure.

In the future, a global powerhouse like JPMorgan Chase might generate less than 10% in reported earnings but could have endless hidden profits, allowing shareholders to make big bucks!

For example, extreme salaries could legally reduce company earnings -- high-quality shady firms typically kept their profit margins low and shifted surplus profits elsewhere.

Gaskill and Ian's shorting exemplified this hidden earnings strategy... losses remained with the company, gains pocketed for themselves.

"I've given my offer," Ian said with a grin.

"Too little!"

"And there's this information." Ian spread his arms. "This is money too."

Clement yelled, "This is extortion! This is blackmail! Ian Carr, you can't do business like this! You'll make enemies everywhere."

He felt he was about to lose his mind dealing with Ian.

That bastard, hadn't I supported the change of chairman?

I didn't offend him!

Ian replied coldly, "If you're powerful enough, those enemies will only watch you helplessly."

After a while, Clement calmed himself down.

He knew how severe the repercussions would be if this leaked, so he said, "I have a pending application for a $300 million loan extension; you have to guarantee it will go through."

Ian shook his head. "I can't guarantee that. It requires a professional audit before it can be approved. As long as your company is operational, the bank won't refuse to deliver profits right to your doorstep."

"Damn it!" Clement cursed. "You're going too far!"

Ian smiled. "I've been quite polite, buddy. A Madoff got all of you to change your minds and abandon me, and I'm still offering a premium for your shares. I genuinely feel I'm being generous."

Clement was at a loss for words. "He gave us high interest. I don't have to do anything; just borrow money from Lino Bank and hand it over to Madoff, and I'll profit off the price difference."

Ah!

Everyone could play that game, but poison was always an enticing temptation!

Ian scoffed, "Then keep making money off him; I'm not stopping you."

Clement understood. "You're getting back at us, aren't you?"

Ian smiled. "Just as you said, business also requires relationships."

As he leaned closer to Clement, he said coolly, "Unfortunately for us, there's clearly not much of a relationship between you and me."

---

"Damn it! Damn it! Damn it! You can't treat me this way, Ian Carr!"

In Lino Bank's headquarters office, the new chairman, Brad, looked astonished at Ian. "We're friends; I've taken you out to lunch!"

Sitting across from Brad, Ian spoke in a flat tone. "Yet it was you and Madoff who plotted against me, stabbing me in the back."

"Even if you're running well, we can't lend you an unlimited amount of money!" Brad seemed a bit on edge.

Bang!

Ian slammed his hand on the table and shouted at the elderly man in front of him, "But you know I'm making money! You know I can repay! You know my company is continuously appreciating as collateral! You refused a company that could help you earn money! Others might strike a blow while you're down; I'm not down, and yet you're pushing me to the edge!"

He pointed at Brad and shouted, "You almost drove me to ruin! You worthless bastard!"

Brad seemed quite uneasy, shaking his head repeatedly. "This is all business."

Ian reined in his anger somewhat.

A businessman's emotions were also a form of performance; they could ebb and flow.

He spread his hands and said, "If you want to talk about relationships, I can talk to you, but if we're talking business, then this is strictly business. I can offer you a good price at a $3 billion valuation if you hand over all your shares to me. However, I'm a bit short on cash, so I'll need to borrow more money from Lino for this. Does it need board approval?"

Brad was speechless. "You're borrowing money I gave you to buy my company!"

Ian shook his head. "No, that money isn't yours; it belongs to all the users."

Brad snapped, "Even if you control Lino, you can't keep withdrawing money unchecked; you must still act within legal limits. As the bank's owner, you aren't without restrictions."

Ian chuckled. "I won't be the bank's owner."

Brad was astonished.

Ian pointed out plainly, "Gaskill is still the chairman; I'm just a pure shareholder. All borrowing processes will be legal and legitimate... it's just that my trust level with Lino is higher than usual."

"Damn it, this is my company; you can't let it just vanish like this!" Brad shouted angrily.

Ian replied coolly, "Not anymore. I'm now the majority shareholder. If you don't agree, Gaskill and I can force an acquisition; at that point, it won't just be about $3 billion -- it could drop to $2 billion or even less! I can even let the companies borrowing from you go bankrupt, and then you won't see a penny back, leading to massive losses the next year! You know I can do it!"

Hearing this, Brad was finally left speechless.

After a while, he nodded. "Alright, you win, Ian Carr! The bank now belongs to you; you can extract funds as you please, but I warn you that even without limits, your actions could still lead to your downfall; you can't recklessly expand!"

Ian smiled. "Provided I lose."

"No one can escape defeat!"

"I don't deny I might lose once or twice, but I'll definitely be the final winner!"

*****

https://www.patreon.com/Sayonara816.