Chapter 533: Estimating the Price of DuPont
For a conglomerate, the impact of being split is far greater than that of a trust. Sheffield believes this because a conglomerate must have strong and weak industries. The existence of weak industries requires the supplement of strong industries.
This can be clearly seen from the chaebols in Japan and South Korea. Many of the chaebols have a large number of inefficient industries, which is almost the same as the first task of state-owned enterprises, which is to reduce the unemployment rate.
This is also the reason why conglomerates are often eliminated when faced with industrial upgrading, and why few countries in the United States choose the conglomerate model. No matter what industry is developed, once it encounters a bottleneck, the probability of collapse is much greater than that of a trust. Koreans understand this best. Daewoo Group, which was once more popular than Samsung, disappeared in an instant.
Of course, South Korea's Daewoo Group disappeared just like that. The main reason was that it had guts. During the Asian financial crisis that year, the United States was sharpening its knives to fleece South Korea. Among the giant conglomerates such as Samsung and Hyundai, South Korea's Daewoo Group was the only chaebol that dared to say no.
The only Korean with a guts was Kim Woo-joong, the boss of Daewoo Group. Kim Woo-joong felt heartbroken that it was not a manly thing for him to just let the United States slaughter him and do nothing, so he deliberately raised funds to mortgage Daewoo and took out a loan of more than 20 billion US dollars, which he transferred to his secret account in the UK. He laundered the money and fled, fighting the United States head-on, intending to leave an empty shell of Daewoo for the Americans to reap. As a result, he was treated as a "monkey" by his own people in the South Korean government, killing the chicken to scare the monkeys in front of other entrepreneurs, and scaring other conglomerates into bowing their heads and becoming puppets of the United States.
No Korean chaebol dared to inject capital into Daewoo, a pillar company of South Korea. They watched Daewoo go bankrupt with bleeding hearts. The group's chairman, Kim Woo-choong, was forced to flee overseas after being liquidated by the United States for economic crimes. In fact, it was just to allow General Motors to buy the Daewoo Group worth 60 billion US dollars for only 400 million US dollars, becoming the most exaggerated case of wool shearing in history.
J.P. Morgan and J.D. Rockefeller in New York also learned that the DuPont consortium had lost the case and the entire company had been split into four. They quickly contacted Sheffield, congratulating him and expressing their desire to talk in person.
"Okay, I'll go to New York right away, and we really need to have a deep talk." Sheffield readily accepted their invitation.
Now we are practicing the shearing tutorial in China, and the target is naturally the DuPont family after losing the lawsuit. Sheffield naturally hopes to replicate the brilliant case of General Motors' acquisition of South Korea's Daewoo, leaving an example for future business to learn from. If the technical work of shearing sheep does not go through several domestic drills, how can it go global in the future?
In the Morgan Building, Morgan Jr. and Rockefeller Jr. were all smiling, and seemed to be extremely happy about Sheffield's victory, but what they were most happy about was whether they could get a share of their own.
How much of the DuPont family's 50 million dollar industry he could get was something very worthy of discussion.
As a banker's banker, J.P. Morgan had an account of his own to settle.
"First of all, we are happy for William's victory!" Little Morgan opened a bottle of red wine and poured it for the two of them. As he poured, he said, "This old case has finally come to an end. We won't talk about whether the reason makes sense, but there is finally a result. I hope that there will be no more fierce conflicts in the domestic business community in the future."
"Of course!" Rockefeller Jr. also shook his glass and said, "This time the Supreme Court split DuPont into four parts, which should calm William down. I believe even Madam Anna should be relieved. Strictly speaking, DuPont no longer poses a threat."
"To be precise, it should be after the three of us are separated that they will no longer be a threat." Sheffield nodded, clinked his glasses with Morgan Jr. and Rockefeller Jr., and asked, "How will the stock market react?"
"Of course it plummeted. Is there any need to say that? All stocks related to the DuPont consortium are falling. And I have already told some friends that they will never lend money or inject capital into DuPont's industries. Now you are happy." Little Morgan drank the red wine bit by bit after he finished speaking, and put the glass on the table. "In the United States, when the three of us decide on something, it can basically be predicted to be successful. Now we should talk about the important things, which involve an industry of 50 million US dollars. Although we are friends, we will not hesitate to fight for the interests that need to be fought for."
Listening to Morgan Jr.'s words, Sheffield and Rockefeller Jr. both smiled knowingly, knowing that now was the time to start the meal.
Under normal circumstances, the split would definitely cause the stock price to plummet. Without asking, the two knew that Morgan Jr. must have verbally promised to help and let the DuPont family pay for the stock market. As for whether he would really help! The DuPont family thought it might, but the three of them thought it would definitely not.
When the DuPont family's funds were exhausted, that's when J.P. Morgan Jr.'s true face showed.
"I heard recently that you are with a Japanese woman?" Rockefeller Jr. asked in a low voice, "Now Japan seems to be dissatisfied with our country. You should also pay attention to it and don't let some people spread it. Those people are supporters of the Democratic Party."
"She is a very obedient woman. What is there to pay attention to? I like me and we are together. Since when did slaves have the power to dictate the lives of their owners? With my consent, they are citizens of the United States. If they dare to interfere in my life, they are nothing." Sheffield sneered, "If they can't shut up, I will make them lick the black man's ass."
Little Rockefeller laughed and said as if it was just what he expected, "I knew you were just taking advantage of those white supremacists. My guess turned out to be correct."
"That's right!" Sheffield admitted bluntly. People like him just don't have nuclear bombs, otherwise he wouldn't distinguish between foreigners and his own people. If he wants to throw it in New York, he will throw it in New York. If he wants to throw it in Texas, he will throw it in Texas. He won't feel guilty about throwing it in any country in the world.
True monopoly capitalism should do just that, discarding all these racial and ethnic sentiments. Just distinguish between slaves and slave owners. Simple things are best, don't make it so complicated.
"Don't talk about useless things. Rights are not quantifiable. Let's talk about things that can be quantified." Morgan Jr. found the table that he had made during this period. It showed the equity structure of the DuPont Consortium in its subsidiaries, as well as the scale of each industry. Both of you should take a look.
In addition to the equity and financing situation, the shareholding ratio and liabilities, the above information can be said to be very comprehensive. The banker among bankers can be said to be well-deserved, and he has analyzed the DuPont family thoroughly.
"If you can produce the DuPont family's form today, will you produce the United Company's form tomorrow?" Sheffield asked in a vigilant tone as he looked at it. "You are really a ruthless Grandet."
"I would like to have one, but you have protected the core industries of the United Company too well. They are all unlisted industries. I can't even estimate them, so I can only make random guesses without any basis." Little Morgan said with regret, "I don't like this feeling. I really don't like it."
"This proves that I did the right thing!" Sheffield smiled calmly. He mainly looked at the information about the DuPont family in the chemical industry. He was not actually interested in other things like steel, mining, etc.
In Sheffield's eyes, the chemical industry is the most important and the second most controlled industry by the DuPont family, after the industrial and mining industry. As for other industries, just like Samsung Electronics, Samsung Real Estate, Samsung Insurance, etc., many of the major shareholders are other natural persons, but they are under the name of the DuPont family.
The industries with less control will naturally see their valuations drop the fastest after being dismantled. In other words, they are the easiest places to attack. If Sheffield were to talk to the DuPont family alone about the chemical industry that is its target, it might not be so easy to achieve its goal, even though the situation the DuPont family is facing is very bad now.
Everything keeps pace with the times, just like the DuPont family. After Coleman DuPont left the DuPont consortium, didn't they open a bank? The so-called rules and regulations are just like Jack Ma not playing games. They are just talk. Do you really take them seriously?
"The output of the DuPont family's steel company is completely incomparable to the steel output we control now. After leaving the internal circulation, I can say that it is worthless. Of course, I think two million US dollars is already a very high valuation for these equipment and production capacity!" Rockefeller Jr. said in a condescending tone, "It's okay to squeeze it out. Being able to propose a merger and acquisition is already very considerate of Pierre DuPont."
"The DuPont family's chemical industry is large in scale, but it is actually worthless in the context of lower tariffs." After Rockefeller Jr.'s evaluation, Sheffield said, "You all know how strong the Germans are in the chemical industry. Even if I take over, I may not be able to compete with the Germans. I may even lose money. Although it is very frustrating, this is the fact. Can this be estimated at 10 million US dollars? I think it is only worth 3 million!"
"Then from what you said, a mine worth 30 million US dollars is not worth it? The economy is not very good now, and the domestic demand is not high. I think it is only worth 10 million US dollars!" When Morgan heard what the two greedy people said, he was not polite, "If it belongs to me!"
"Why should it belong to you? We still need to discuss these minerals." Rockefeller Jr. quickly spoke up to stop them.
Look at this face! Sheffield shook his head slightly. Compared with these two people, he was still very conscientious.
(End of this chapter)
Continue read on readnovelmtl.com
