Vol 6 Chapter 591: Give and take

"I have no problem with this, and your investment is welcome," Lauder immediately agreed.

As soon as Feng Yiping looked forward, he knew that the week after Lehman’s collapse would never be better for them, and they would face the test of life and death just like Lehman today.

Feng Yiping is willing to buy their shares at this time, which is naturally a good thing, and it is also a double good thing.

First, they got more funds, and second, who doesn't know Feng Yiping's good vision now?

Feng Yiping's investment in them at such a time will definitely be better than Buffett's investment in them at this time.

Everyone knows that Buffett sometimes misses, but Feng Yiping, so far, has not missed.

That is, Feng Yiping's purchase of Goldman Sachs shares at this time can definitely greatly encourage investors' confidence in Goldman Sachs.

"Just, what about the conditions?" He followed again.

He remembered that Feng Yiping said at the beginning that he could "lend" them tens of billions of dollars, but he also never thought that Feng Yiping would really lend him tens of billions of dollars in vain.

Not to mention that they are just a cooperative relationship. At such times, even father and son or husband and wife will not risk supporting tens of billions of dollars in this way.

"I can first inject $5 billion into Goldman Sachs to buy preferred stock,"

Buy preferred shares?

Lauder thought for a while, such a request is really nothing, "This is not a problem, but can't it be 10 billion dollars?"

"10 billion U.S. dollars, 20 billion U.S. dollars, it's okay," Feng Yiping said, "but haven't you been asking for the conditions? It's not too late to discuss this after listening to my conditions."

"Okay, you go on,"

Lauder also feels that Feng Yiping's capital injection of 5 billion US dollars, if there is only a requirement for preferred shares, it is obviously unrealistic.

"I request that these $5 billion preferred stocks enjoy a fixed dividend of 10% every year,"

Lauder immediately figured it out, which meant that Goldman Sachs paid him $500 million in dividends every year regardless of profit or loss.

No wonder he asked himself to listen to the conditions before saying that if he injects 10 billion in capital, he will have to pay him 1 billion in dividends every year. This figure undoubtedly makes him a bit painful.

But he just thought for a moment, and said immediately, "It's okay!"

Frankly speaking, financing is really too difficult and difficult now. The inter-bank lending is almost extinct, but it can be dismantled. The interest rate is also incredibly high.

For the current situation, a fixed dividend of 10% is low and naturally not low, but it is definitely not high.

"Then inject 5 billion dollars first," he said.

"Not now," Feng Yiping said immediately, "You know, I'm still in India, and there are still some important tasks to be handled here. When I arrive in the United States, I will inject capital immediately."

Knowing that Goldman Sachs' stock price will fall in a few days, fools will inject capital now.

"I didn't say it's now," Lauder knew, and he certainly couldn't take advantage of Feng Yiping's advantage. "When will you arrive in America?"

"It mainly depends on the progress of my work here," Feng Yiping said.

Lauder said in his heart, you mainly look at the situation on Wall Street. If our stocks do not jump, your work in India will not make any progress. "Okay, then..."

"My friend, can you give me a chance to finish talking?"

When Lauder heard this, he immediately wanted to say, Friend, what kind of friend are you?

Because this sounds, it still means that the conditions are not finished.

He took a deep breath, "You go on,"

At this time, it is really rare to see a big beneficiary of US$5 billion and US$10 billion.

"I request, and at the same time, obtain, in the next 5 years, buy 5 billion US dollars of Goldman Sachs common stock call options, the price will be negotiated when we sign the agreement a few days later. Of course, you also know the custom that this price will be higher than your timely stock price. Be lower,"

This time, Lauder didn't speak.

The so-called call option means that the holder of the option has the right to buy and no obligation to buy during the agreement period.

For example, when they sign the agreement after today, if the agreed corresponding stock price is $100, then he will definitely not buy when it is estimated to be less than $100 during the agreement period.

However, when the stock price is higher than $100, for example, when it reaches $150, he can sell.

This means that he bought a share of 150 US dollars at a price of 100 US dollars per share.

Of course, similar option transactions are generally not exercised in the end. The usual operation is to convert the difference into common stocks.

That is, taking the average stock price of the 10 trading days at that time and the exercise price, using the above example, for example, the difference between $100 is multiplied by the number of shares represented by the warrant-it is expected that that will exceed 40 million shares, because when they sign the agreement a few days later, the stock price of Goldman Sachs should still be above $100. Feng Yiping estimates that it will also be at least $110.

Then, give him a stock of corresponding value.

Although the proportion of shares held in this way is much lower than the proportion of shares held after the exercise, the benefits are obvious: you can get shares for nothing without paying a penny.

There was still no voice on Lauder, and Feng Yiping asked, "Are you still there?"

Lauder's voice came, a little dull, "Have you finished?"

"You can speak first this time," Feng Yiping said.

Lauder is really anxious, meaning, are you not done yet?

Are you endless?

Who has been saying just now that it's helping, not mentioning conditions or conditions?

Well, he is a big gold master, he is also a particularly influential big gold master. His investment in Goldman Sachs can be interpreted as a vote of confidence in Goldman Sachs with a little publicity, which will help him survive the crisis. ... Lauder comforted himself.

"First of all, you have invested at least 5 billion U.S. dollars, the highest..." Lauder looked at the men gathered at the table, "We are not capping for the time being. We still need to see the current situation and our needs."

"No problem, thirty to fifty billion dollars, just talk," Feng Yiping said lightly.

In this meeting room temporarily occupied by Goldman Sachs, Lauder and the men he brought to the meeting today were almost choked to death by these words. It is great to have money!

Well, there is so much cash at this time, which is really amazing.

The acquisition agreement reached quickly by Bank of America and Merrill Lynch is only worth $50 billion.

But are you using it so prominently?

Forget it, don't care about you.

"However, we have the right to redeem your preferred stock at any time," Lauder said.

After things get better, a fixed dividend of 10% per year is always uneconomical.

"No problem at all," Feng Yiping agreed, "but you must also know that the redemption must be a premium."

Lauder has no objection, which is also a case, "I know, what percentage of the premium do you want?" he asked.

"The same is 10%," Feng Yiping said immediately.

This means that they will have to spend $5.5 billion to redeem it.

"Some high, 7% is more reasonable," Lauder bargained.

"10% is a very reasonable ratio," Feng Yiping refused to give in.

After a few rounds, Lauder gave up, "Then 10%,"

At this time, there is really no need to waste time for those tens of millions of small dollars.

"So, what about call options?" Feng Yiping asked.

Lauder looked at his men.

Seeing him look over, the leader nodded although there was no smile on his face.

"I don't have any comments on that part," Lauder said, "and thank you for your confidence in us."

In fact, without the bankers under his staff to help with the accounting, Lauder would also agree to Feng Yiping's request.

Call options, as the name suggests, Feng Yiping is convinced that Goldman Sachs' future stock price will rise to make this request.

Such a requirement will also inspire investors' confidence in Goldman Sachs. Look, Feng Yiping is convinced that Goldman Sachs' stock price will rise in the future.

"After working together so many times, of course I have confidence in you and the Goldman Sachs team," Feng Yiping said.

"Also, Lauder, I think you should be clear that the reason I did this today is really hoping to help Goldman Sachs,"

"A 10% return on investment may be very good for some people, but you know, for me, 10%, hehe," he chuckled slightly.

At this time, those of Lauder felt that Feng Yiping had a lot of demands, and he was a bit guilty for a while.

Also, when will Feng Yiping take a 10% return on investment in his eyes?

"Come on Feng, your comprehensive investment return will be more than 10% by then?" Lauder said, "That..."

"You forgot, I haven't finished talking yet?" Feng Yiping interrupted him.

Lauder let out a rough breath, "Please continue,"

"Don't be impatient, the last request, the Goldman Sachs board, must have a representative of me,"

Lauder almost subconsciously wanted to say, this is impossible!

He felt that what Feng Yiping values ​​most may be this condition. A board seat means that Feng Yiping will know many arrangements of Goldman Sachs.

Feeling his silence, Feng Yiping immediately said, "Come on Lauder, you go out and ask, you ask those people on Wall Street, who doesn't want me to be their long-term shareholder and a member of their board of directors?"

"I'm telling you, this is you, and it's a big motorcycle, and I won't go if you ask me to go,"

Lauder was dumb for a while, and several of his men were equally speechless.

To let Feng Yiping be a long-term shareholder and a member of the board of directors is indeed something that many companies cannot do with money.

"We, agree," Lauder's voice was astringent.

Although this was good news for them, he always felt that it was not a taste, really, Ren Feng Yiping felt round and flat.

…………

Mumbai~www.wuxiaspot.com~ Feng Yiping put down the phone and took a deep breath. Wu Qian quickly handed him a glass of water. Feng Yiping drank two big sips, and said OK to the expectant subordinates. Gesture.

"Yeah!" everyone shouted with excitement.

At the Four Seasons Hotel, Paulson flashed into the meeting room, "What deal did Feng mention?"

Lauder leaned back in the chair tiredly and gave him a brief introduction.

Paulson thought for a while and nodded, "The conditions are actually reasonable. In the long run, it is a good thing to have shareholders like Feng."

"At the same time, judging from his past experience, he is still a good partner,"

Lauder nodded, otherwise I wouldn't agree, "Oh yes," he almost pulled Paulson's sleeve, "We have to talk about AIG,"

Paulson frowned again...