Chapter 242: Being a rogue is the American strength

The next day.

BNP Paribas headquarters.

It is Europe's leading global banking and financial services organization and was once ranked as one of the world's top four banks by Standard & Poor's.

It is even the central bank for many small African countries that are not central banks. The currencies of those small African countries are all issued by this French commercial bank.

That morning, the current president David Baptiste received Andre warmly.

Paladin Investment has a deep business cooperation relationship with BNP Paribas. For example, the two parties have a lot of cooperation in financial allocation business.

Because to some extent, BNP Paribas is also a member of Wall Street.

It is just a peripheral member, along with Deutsche Bank and those banks in London.

It often follows Wall Street in robbing the global southern countries.

For example, during last year's Southeast Asian economic crisis, the two sides cooperated.

Not to mention, early this morning, he received a report from his subordinates that Paladin Investments had suddenly transferred a sum of up to US$1.5 billion into their bank account.

Although he didn't know what Paladin Investment was trying to do, how could he not be enthusiastic when this big client deposited such a large amount of money into his bank?

"President Andre, welcome, please take a seat!"

Andre's position within the Milo system is second-in-command and vice-chairman of the Blackburn Foundation.

But externally, he has now been temporarily appointed by Milo as the CEO of the European branches of Paladin Investments and Paladin Capital.

Milo and Irene traveled extensively, skiing in the Alps and taking a cruise on the Thames.

Andre and his friends were not idle, they were traveling all over Europe.

"Same coffee as last time?" Baptiste asked enthusiastically.

"OK, thanks!"

“…”

After a round of greetings, David Baptiste's secretary brought both of them steaming cups of coffee.

Andre got straight to the point and said, "President David Baptiste, this time, I hope to reach two cooperation agreements with BNP Paribas."

"To show our sincerity, we deposited 1.5 billion US dollars into our company's account at BNP Paribas yesterday. I wonder if you have received the news."

David Baptiste raised his eyebrows, then smiled and nodded and said, "I received the message this morning. Thank you very much for your trust in our bank. Dear Andre, please trust BNP Paribas. We are the most professional bank in the world and we are trustworthy."

"Of course, I would be happy to serve your company."

"What kind of cooperation is this?"

For banks, the most important thing is capital. As long as they have capital, they can make money by running it.

So David Baptiste has made up his mind to take all the money and strengthen the strength of BNP Paribas.

That was $1.5 billion in 1997, all in cash.

For banks, it is definitely very attractive.

Even if this money was taken to the current Eastern country.

I guess the best actor over there will meet you in person.

Milo didn't need to, he had already seen it.

Andre took out the letter of intent for cooperation from his briefcase and handed it to David Baptiste.

"President David Baptiste, this is the letter of intent for cooperation made by our company. It contains our company's business needs. Please take a look first."

"OK!"

After David Baptiste finished speaking, he immediately took the thin letter of intent for cooperation, opened it and quickly read through it.

When he first read the first part, his brows subconsciously frowned.

Paladin Investments wants a stake in LVMH?

What do Americans want to do?

Short or long LVMH, or maybe you want to get involved in this fashion and wine group which is currently one of the top five in the world.

To be honest, Bernard Arnault also worked with BNP Paribas.

Even he personally and the LVMH Group still owe money to BNP Paribas.

But this is normal.

Whether it is the consumption of the wealthy, entrepreneurship, or the development of large enterprises.

Most of them need to borrow money from banks frequently, and banks welcome their behavior very much.

Otherwise, what would the banks earn? There are relatively few people like Milo who make their money mainly in the financial market.

Most formal banks still make money through legitimate loan business.

Although he has a good relationship with Bernard Arnault.

But he will not go against money or performance.

Baptiste remained calm and continued to read. When he saw the back, his brows relaxed and he began to calculate quickly in his mind.

Andre was not in a hurry. He remained patient and waited while drinking his coffee.

After a long time, David Baptiste finally put down the letter of intent for cooperation in his hand.

Andre then asked with a smile: "President David Baptiste, are you willing to take over these businesses?"

David Baptiste smiled and nodded: "Of course, I have no reason to refuse."

Yes, he and National Bank do have a good relationship with Bernard Arnault and LVMH.

But we must earn every penny we can! "However, for the specific negotiation, your company needs to connect with our dedicated personnel."

Paladin Investments wants to acquire BNP Paribas's stake in LVMH, and even Bernard Arnault and LVMH's debt.

In order to maximize benefits, a negotiation team is definitely needed here.

Andre nodded and stated something: "President David Baptiste, I hope to reach the first cooperation as soon as possible, and then start the second cooperation business."

"And it must be kept confidential. You should be able to see that the commission we offer is very high. I believe that no company in France will refuse this business. However, we have only contacted your bank. If the news is leaked, it will put us in great trouble. At that time, your profit will be even lower, right?"

David Baptiste heard the underlying meaning in Andre's words.

He didn't get angry, but nodded seriously and assured, "President Andre, please rest assured that our bank will never cross the commercial bottom line and will do its best to protect the interests of our partners."

"I will call the relevant personnel for a short meeting today and will call you to report the situation this afternoon. Is that okay?"

"Of course no problem, I'll wait for your good news!" Andre said with a smile.

Andre came quickly and left quickly.

After he left, David Baptiste looked over the letter of intent again.

Until now he still doesn't understand what the Americans want to do.

Want to acquire LVMH?

Or are you optimistic about LVMH and want to hold it for the long term? Or is it a short-term short-term long position?

He couldn't figure it out, but Baptiste still conveyed some instructions to the secretary.

Paladin Investments has proposed two collaborations.

One is to acquire the equity and debt of LVMH held by BNP Paribas, and the second is to entrust it to help acquire the equity and debt held by other banks and institutions in cash.

The two collaborations are bundled together, and the second business can only be started after the previous one is completed.

So at most BNP Paribas could make some money from the first cooperation.

And the second acquisition must be done quickly. The lower the cost of the acquisition, the higher their profit will be.

Paladin Investment's acquisition conditions also ensure that BNP Paribas will do everything possible to complete the acquisition of relevant equity quickly and low-key.

Because once it is leaked, LVMH and Bernard Arnault will discover the action.

Damage to business reputation is a minor matter.

Seeing that they could not get the profits that were within their reach, the bank’s shareholders would definitely tear Baptiste to pieces afterwards!

This was exactly the “surprise” that Milo prepared for Bernard Arnault.

Before directly approaching the three major shareholders, the Moët family, the Hennessy family and the Vuitton family.

Milo must first make adequate preparations to try to hit the target successfully.

That afternoon, David Baptiste responded to Andre, and the two sides began negotiations the next morning.

After all, Paladin Investments and BNP Paribas have not just started their cooperation, and David Baptiste is not a short-sighted person, so he set the tone for his subordinates.

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In order to succeed as quickly as possible, Milo did not save money, so the price offered by the acquisition team of Paladin Investment was also very generous.

After only two rounds of negotiations, the first cooperation was quickly achieved.

BNP Paribas transferred its 9.4 percent stake in LVMH for $658 million, a 28 percent premium.

The 523 million francs of debt held was transferred at a premium of 1%.

Because this corporate bond is about to mature.

BNP Paribas is almost done collecting all the interest, so of course we can’t offer too much of a premium.

The funds needed for the two collaborations were directly transferred from Paladin Investment’s bank account by BNP Paribas.

However, to be on the safe side and avoid regulation, LVMH Group's equity and debt are currently still held by BNP Paribas.

The reason for doing this is to take into account the current trading regulations of the French financial market.

According to regulations, a new shareholder of a listed company should notify the company in which he or she holds shares and the financial market regulator when the increase in shareholding exceeds 5%, 10%, 15%, 20%, 25%, 33.33%, 50%, 66.66%, 90% and 95%.

However, if old shareholders trade equity through cash, the relevant transactions do not need to be made public, and the shareholding situation does not need to be disclosed to the exchange within half a month.

As long as this rule is followed, Milo can acquire as much equity as possible outside the stock market.

Of course, the prerequisite is to have enough cash.

In order to mobilize the enthusiasm of BNP Paribas and also to make them feel at ease about the acquisition.

Less than three hours after the first round of cooperation funds were transferred, another $3 billion was transferred into Paladin Investment’s BNP Paribas account.

After hearing the news, Baptiste was so happy that he felt like flying.

One and a half billion dollars in the beginning, and another three billion dollars in the end! A total of four and a half billion dollars! Baptiste was not sure at first, but now he is very sure that the Americans definitely want to acquire LVMH!

Once the Americans succeed in the acquisition, this deal will surely become the largest acquisition in France this year! It may even be the largest commercial merger and acquisition in Europe.

BNP Paribas was in the middle and could not only make huge profits from interest and commissions.

You can also accumulate very good business reputation in this regard.

In the future, when others want to acquire French companies, they may consider BNP Paribas Group.

So Baptiste became very excited.

In particular, Andre also made it clear that as long as BNP Paribas acquires a stake.

You can transfer money to your own bank account in advance for transaction payment.

There is no need to touch BNP Paribas' money, just transfer the money, and after each acquisition is completed, the bank can directly obtain the corresponding commission.

No need to advance funds, but you can get corresponding commissions... Baptiste has never seen such a good thing in the banking industry for so long! It can be said that Milo also spent a lot of thought to get BNP Paribas to contribute as much as possible.

As the second largest bank in France and the fourth largest bank in the world, BNP Paribas’ influence is undeniable.

When they mobilized all their resources, their acquisition offensive was unstoppable.

In just one week, most of the LVMH shares and debt claims that could be exercised in the near future held by other banks were acquired.

And BNP Paribas wants to maximize its profits as much as possible.

The level of confidentiality was so high that even Milo would be ashamed.

Because it's been so long.

Neither Bernard Arnault nor anyone else at LVMH has discovered it yet!

It turns out that money is still what moves people.

With a 200% profit thrown in, BNP Paribas rushed forward with a roar.

This is like the difference in service attitude between employees of Pangdonglai Supermarket and employees of other supermarkets.

Is it because the moral character of the employees of Pangdonglai is higher? No.

It's because they give a lot of money.

It’s the same principle as Milo’s move to BNP Paribas today.

So before November is over.

Through BNP Paribas, Milo already holds 29.5% of LVMH Group's shares and 3.5 billion francs or about US$1 billion in commercial bonds that will mature within six months to two years.

The share premium was basically around 20%, so it cost about US$2.5 billion.

All bonds are at par. Based on the current exchange rate between the franc and the US dollar, the total value of foreign currency bonds and franc bonds is about US$1.8 billion.

Add to that the $62 million commission paid to BNP Paribas.

In less than half a month, Milo spent $4.3 billion.

So, launching a blitzkrieg in business really costs money.

But in Milo's opinion, the efficiency and results are indeed worth it.

The first phase of the mission was completed perfectly!

The second stage is to start looking for private negotiations with the other three families besides Bernard Arnault, the largest shareholder and the real controller of the LVMH Group.

If I could get the shares of these three families.

That doesn't even include the shameless tactic of converting debt into equity.

Milo will also be able to hold more than 50% of the shares and completely control the LVMH Group.

If these French people insist.

Then don't force him to act like a rogue. Either convert the debt into equity or pay back the money!

Judging from Bernard Arnault's unscrupulous acquisition spree in recent years.

It is impossible for LVMH Group to come up with such a large amount of funds to repay its debts in a short period of time.

Even if it can be taken out, the working capital will probably be completely drained.

So it's very simple.

The deal was done. Bernard Arnault was finished.

If you are smart, you can take the money and exit with the other three families.

Not smart, waiting to die.

If the talks fail, don't blame Milo for turning the table. Even if LVMH cannot be destroyed, it will make things difficult for it for a long time.

This is the second stage - I will destroy what I can't get, playing rogue! (End of this chapter)