Chapter 299 The Dilemma of the King of California

Sometimes things are just so strange.

A person's departure or appearance has an incomparable impact on many things.

Schneider is alive, even if he is incapable of working most of the time.

But as long as he is alive and can remain sober, the Wilson family can still maintain its apparent deterrent power.

The titles of California Lion and King of California are the result of his past experiences.

But when the news that Schneider was hospitalized and in a coma was proved to be true.

That all changed.

Unless he wakes up right now.

Otherwise, even if he recovers after some time, things will be different from what they are now.

Once someone fires the first shot, others will follow.

The Wilson family's ancestral home in Nob Hill, San Francisco.

It can be said that the situation is precarious at this moment.

The presence of Litton Industries' management and the Litton family in person made the place seem a bit crowded.

Not visually, but psychologically.

In the Wilson family's living room.

Some members of the Wilson family gathered here.

There were Paul Wilson, three brothers Edward, Leonard, and Timothy, as well as James Wilson and some other tribesmen.

Among them, James Wilson is Paul Wilson’s biological son, and Edward’s cousin.

James Wilson is now the chairman of Litton Industries.

He married the daughter of the Litton family, which was part of the California consortium.

He has always been a vassal of the Wilson family and can be said to be the member closest to the Wilson family.

Just like the family of Milo's uncle Brian, basically every core family of the consortium is surrounded by two or three close families like Litton to support it.

Surrounding these families, there are at least seven or eight more families on the periphery.

Then these core groups formed consortiums.

Most did, but not Morgan and Rockefeller.

They have only one core family, and that is themselves.

Perhaps it is precisely because of this that they have less internal strife and internal interest struggles.

In the end, after more than a hundred years, the financial groups with multiple core families in Boston, Chicago, and Cleveland were squeezed and suffered terribly.

James Wilson married Litton's daughter and ran this industrial company, which was founded after World War II, on behalf of the Wilson family and the Litton family.

Of course, James does not hold much shares, less than one percent.

This is also the current situation of the Wilson family holding shares in various companies of the family consortium.

His family members hold very few shares in various companies, and most of the shares are in the family's charitable funds or management funds.

The rights and interests of the fund belong to everyone, but the head of the family has the highest authority.

To be honest, this model is only used by California consortiums.

Their alliance is much looser than that of other consortiums.

It can even be said that if the Wilson family had not appeared, if Schneider and his father's United Alliance had not appeared, the California Consortium might not have appeared at all!

This is also why even the weakest Texas financial group can have a loud voice in Washington.

The California consortium, which has a growing economy and owns two core urban clusters, Los Angeles and San Francisco, has basically no voice in Washington.

Because they can't even handle their own internal affairs.

In the past, there was a Schneider who could barely bring together many families to work together.

After the millennium, there was no Schneider, nor anyone else.

Then the California consortium naturally fell silent.

"James, what is the current situation of Litton Industries?"

"Has it really reached a critical point in such a short time?"

a family member asked James Wilson.

James Wilson nodded solemnly and said to everyone, "The situation is indeed very bad. The key is that the announcement of Knicks United Funds is too inflammatory."

"Lytton Industries is the property of Wilson and Litton. Normally, other shareholders will stay on the same side with us because they can make money by following us."

"But over the years, the company's operating performance has deteriorated, repeatedly disappointing shareholders, and dissatisfaction has existed for many years."

"In 1990, the company's turnover reached 6.483 billion US dollars, and its net profit was 915 million US dollars, with a net profit margin of 13.23%."

"Last year, the company's turnover reached 9.537 billion US dollars, but its net profit was only 528 million US dollars, with a net profit margin of only 4.35%."

"Not only that, although we have cleaned up a lot of bad assets, a large part of the funds we recovered was used to repurchase stocks to stabilize the stock price. It was indeed effective in the early stage, but now with the stabilization of the international situation and the competition from other arms companies, the company's stock price has fallen again. The market value has shrunk by more than one billion US dollars from the beginning of this year to now!"

"Although I am reluctant to face it, the fact is that I did make a series of wrong strategic decisions on behalf of the family, so that most shareholders felt that their interests were seriously damaged. Not only did the annual dividends decrease year by year, but even the stock value was shrinking."

"So now shareholders have lost confidence in us and are unwilling to believe in long-term returns. They would rather choose to believe in Knicks United Funds."

"I am willing to resign, but no matter whether it is Wilson or Litton, we cannot lose Litton Industries!"

After hearing this, everyone present looked solemn.

Knowing the seriousness of the problem, I can also understand the mentality of other shareholders.

Leonard Wilson took the initiative to ask: "James, now we and Litton together control 38.6% of the shares, which is 11.41% short of a majority of the shares. Do you think there are still shareholders who may stand on our side with so many voting rights?"

Normally speaking, if you hold more than 33.4% of a listed company's shares, you can control the direction of a company.

This ratio is sufficient as long as there is no malicious takeover or malicious competitor.

Any more would be a waste of money. It would be better to put the funds into controlling more listed companies.

The problem now is that Litton Industries is facing a hostile takeover.

But the other shareholders do not favor Wilson and Litton at this time.

This is a bit embarrassing.

Because the 33.4% shareholding line has a prerequisite, that is, there must be at least other shareholders with more than 16.6% to support you as the largest shareholder.

Otherwise it will not be firm.

This is the current situation of Litton Industries.

"Knicks United Funds voluntarily announced that it owns 10.2% of the shares, but no one knows how much it secretly controls."

"We can still refuse him access to the board of directors now, but once they request an extraordinary general meeting of shareholders and win over more than half of the shareholders, then according to the company's articles of association, it is really possible for them to achieve their demands."

"Now that things have just happened, we must make a decision as soon as possible about what to do. If we delay, the uncertainty will increase dramatically."

As soon as he finished speaking, the others looked at each other, and then one of the tribesmen spoke up: "The best way is naturally to increase our shareholding. As long as we control the board of directors and the shareholders' meeting, Knicks United Fund Company will have no choice but to withdraw, and no one else will be able to do anything."

"Just based on the current situation, once we increase our stake, the stock price will definitely rise. Conservatively speaking, we need to put out $1.2-1.5 billion in funds."

"This amount of money is not too much, but it is not too little either. At present, it should be easy to get it, but I am worried that something will happen in other places in the future and a large amount of funds will be urgently needed."

"After all, there are many companies that are as important as Litton Industries, or even more important."

Everyone remained silent again, but James Wilson shrugged and leaned back on the sofa.

This is the purpose of his return to the family.

Personally, as the chairman of Litton Industries, he certainly wants the company to be stable.

It would be best if the business continued in his hands.

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Even if he has to resign, at least the company must be saved.

If he couldn't even keep control of the company, his position with Wilson and Litton would probably be greatly affected.

But James has no money, so the decision has to be made by his family.

While the clan leader Schneider King Wilson was still in a coma, no one could make a decision for the time being, so the clan members from all branches and Leighton had to discuss and vote together.

The attitude of most people represents the attitude of the family. Whether right or wrong, he does not have to take responsibility.

"Everyone should think about it carefully tonight. We will call those who are not here tomorrow morning to hold another meeting and make a final decision."

Seeing that no one expressed their opinion, Paul Wilson also expressed his understanding. He was the most senior and powerful person present, so he made the final decision.

Then, he continued to remind everyone, "Because Schneider is ill, the family has entered the highest alert state. In my opinion, the attack on Litton Industries is not an isolated case. There will definitely be many more vicious incidents waiting for us in the future."

"Everyone has the responsibility to raise funds. Adequate cash flow is the ammunition for our defense and counterattack."

“You should also be more vigilant and pay attention to the developments of your respective companies at all times. If you discover any situation, report it immediately to avoid being caught off guard.”

"James, you have to continue to work hard tonight. You are responsible for contacting those shareholders, finding out their attitudes, and stabilizing them first."

James Wilson nodded: "Okay, Dad."

Paul Wilson looked at Edward again: "Come on, Edward, let's go to the study and talk."

Leaving behind the other Wilson and Litton families, as well as the executives of Litton Industries.

Paul Wilson and Milo's older cousin Edward came to Schneider's former study.

The exquisite wooden floors are covered with soft Persian rugs, exuding a warm glow.

Walnut bookshelves are filled with leather-bound books, and classical oil paintings hang on the walls.

The brass chandelier casts soft light onto the carved desk and high-back leather chair.

There was no flame in the fireplace in the corner. To be honest, the weather in San Francisco and Los Angeles really didn't require a fireplace.

But this is an architectural tradition brought from old Europe. As long as Americans have money, they would like to have a fireplace in their home.

This is true even if it only serves a decorative purpose.

"I will support you to become the new head of the family."

As soon as he entered his cousin's study and sat down, Paul Wilson spoke up, "The premise is that it can be maintained, otherwise it will be useless even if I support it."

"Thank you." Facing this great uncle, Edward became calmer and even more taciturn than before.

Adversity makes people progress. With Schneider's departure, Edward had to grow up.

"But we all know that what has come out so far are just pawns."

Paul Wilson: "Before this, I had never even heard of Jim Chanos! Behind this guy is a Chicagoan, and behind the Chicagoan is Morgan!"

“The real risk, in the end, will only come from other giants.”

"Edward, do you have any solution?"

Jim Chanos is a Milwaukee native.

His father was the owner of a dry cleaning chain and his mother was the office manager of a steel plant.

Milwaukee, steel mills, combined with his long experience in Chicago, it is easy to guess that this man has the Morgan family attributes.

Just like in the United States, Rockefeller is not only a representative of finance, but also a representative of oil and energy.

In the United States, in addition to finance, Morgan is the representative of the steel, train and shipbuilding industries.

At this time, facing the questions from my great uncle.

After a moment of silence, Edward spoke softly, "Dear Paul, have you ever thought that we may not be able to stop everyone from invading?"

"Ah..." Paul Wilson sighed, his voice worried, "Of course I know. Even if Schneider can recover immediately, it's actually too late. We are too scattered."

“So, I want to bring in people from outside.”

"Milo Blackburn?"

"It seems you know it very well."

“It’s something that comes to mind quite easily.”

Paul Wilson shook his head. "He has connections with us, has sufficient cash flow, and is not afraid of threats from Morgan and Rockefeller. And he is someone you can contact. Who else is there besides Milo Blackburn?"

"But you have to think clearly. Edward, compared to Morgan and Rockefeller, Blackburn is not necessarily a good person."

"By then, Wilson may no longer be the king of California."

In the study, on the walnut sofa chair.

Edward looked up at the orange chandelier above his head.

"I know all you said. But who else can we turn to besides Milo? The Dreske family? They'd probably like us to make a fool of ourselves. Or Clayburgh? They can't even protect themselves!"

"So who else is there? Who else has the ability and ideas?"

"And in this list, is there anyone else besides Blackburn who would be the most beneficial to us Wilson?"

"At least there is a quarter of Wilson's blood in Milo's body."

"Just for this reason, I think he is the most suitable white knight for Wilson."

Paul Wilson simply closed his eyes and lay back on the sofa like Edward.

"No need to say more. When there is a real need, bring him in."

"I support you."

(End of this chapter)