New Employees With an Annual Salary of 1 Trillion Won - Chapter 101

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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Chapter 101. Things Money Can’t Buy (1)

 

Was it because this was an event hosted by luxury brands?

 

Or perhaps due to France’s distinctive aristocratic atmosphere, the event venue was thoroughly infused with a medieval feel.

 

Antique chandeliers, wall paintings engraved with golden crests, and waiters in white gloves. The atmosphere was as if a medieval noble’s ballroom had been transported here intact.

 

“Isn’t that Chairman Robertson? I truly never expected to meet you in a place like this.”

 

“It’s been a while. With not many days left until retirement, I’m traveling here and there.”

 

“If you have time next time, please visit our company as well. I’ll personally come out to greet you.”

 

Chairman Robertson’s reputation held true even in France.

 

Many people approached the Chairman first to offer their greetings, and the Chairman naturally received these greetings while introducing some people to me.

 

While we were enjoying the banquet for a moment.

 

Someone who looked like a butler came to find us and delivered a message.

 

“Chairman Arnault is waiting for you.”

 

“Please guide us.”

 

Following the butler, we moved to a deeper location.

 

We were guided to a quiet place completely different from the banquet hall atmosphere.

 

Inside, Chairman Arnault, whom I had only encountered in the media, was waiting, and beside him was Vice Chairman Gudin, known as his second-in-command.

 

“It’s been a long time. This is the first time since we met once at that charity event, isn’t it?”

 

“It’s an honor to meet you in France, Chairman. I heard you’ve met frequently with Vice Chairman Gudin.”

 

“Though they weren’t such pleasant memories, thinking about it now, they’re all just memories. Heh heh heh.”

 

Vice Chairman Gudin, Chairman Arnault’s right hand.

 

He was the person who practically directed LVMH’s merger and acquisition strategy, and also the target we needed to approach in this negotiation.

 

“But I’m curious about why you suddenly came to France, Chairman. And could I also know why you sought us out specifically rather than going elsewhere?”

 

“There’s only one reason for me to come all the way to France. Where a war of money is taking place, good mercenaries are always needed.”

 

“Are you thinking of helping us?”

 

Chairman Arnault’s face brightened with color.

 

Just when they were about to acquire Gucci, a white knight suddenly appeared and their acquisition plan crumbled.

 

But if they could also gain an ally called Tiger Fund, it seemed he thought they could revive the collapsed plan.

 

“I heard you secured about 22% of Gucci’s equity shares?”

 

“Originally it was over 30%, but thanks to Gucci’s despicable act of issuing new stocks, it dropped to 22%.”

 

“With 22% equity shares, it’s difficult to win in an acquisition battle. Of course, it would be possible if you poured in massive amounts of money, but that would only leave a pyrrhic victory.”

 

There was nothing that couldn’t be done with money.

 

But whether it would be profitable was another matter entirely.

 

If the performance compared to investment was insufficient, there was no need to spend such money.

 

“Do you think we should give up the acquisition?”

 

“That would be a much better choice from LVMH’s standpoint. But if you give up recklessly, even the 22% equity shares will become dirt cheap.”

 

“Then what should we do?”

 

Even if they were French nobility.

 

When it came to financial matters, they couldn’t match Chairman Robertson, a Wall Street elder.

 

Therefore, Chairman Arnault was sincerely seeking advice, and Chairman Robertson paused for a moment.

 

“Hmm, there is a way. This is the Deputy Branch Manager of Tiger Fund’s Korea branch, and he’s an expert in such matters. Mister Lee, please tell us the solution.”

 

“You need to give a strong signal that you have acquisition intentions for the share price to rise. Tiger Fund’s movement can also give the implication that LVMH is preparing for an all-out war.”

 

Chairman Robertson was intentionally giving me an opportunity.

 

It seemed to be for the purpose of imprinting my existence on Chairman Arnault, and I explained the operation I had planned in advance to him.

 

“How would Tiger Fund move?”

 

“I can’t tell you the details, but just Tiger Fund acquiring some of the equity shares that LVMH holds would inevitably make the opponent nervous.”

 

“Are you pretending to acquire equity shares? Or do you really intend to acquire them?”

 

“We will genuinely acquire 11% of Gucci equity shares that LVMH holds for 700 million dollars. This is also an amount more than 5% higher than the current value.”

 

Chairman Arnault looked at Vice Chairman Gudin.

 

Vice Chairman Gudin, who hadn’t said a word until now, slightly moved his head up and down.

 

“If we accept that proposal, what happens?”

 

“We can sell the Gucci equity shares that you would have to sell at a low price for a high price.”

 

“Even the remaining 11% equity shares?”

 

“That’s right. If you just give up the acquisition battle, the value of the equity shares will drop by more than 20%, but conversely, just Tiger Fund entering the war will increase the value of the equity shares by at least 20% more than now.”

 

Chairman Arnault looked at Vice Chairman Gudin again this time.

 

Perhaps frustrated by exchanging opinions only through eye contact, Vice Chairman Gudin finally stepped forward directly.

 

“Is there any benefit that Tiger Fund gains? A Wall Street fund wouldn’t step forward without any benefit, would it?”

 

“You acquired 22% of Gucci’s equity shares for roughly 1 billion dollars, didn’t you?”

 

“That’s about right.”

 

“We plan to acquire 11% equity shares and make a profit of about 100 million dollars. And we’re also thinking of receiving negotiation mediation fees from both sides.”

 

I hadn’t brought up the Midopa Department Store story yet.

 

Because compared to the conditions we were discussing now, Midopa Department Store was just a very minor issue.

 

“It’s hard to believe that Chairman Robertson moved personally for just 100 million dollars. Is there another reason?”

 

“Vice Chairman Gudin, didn’t I tell you. Think of it as a retirement tour. I’m just traveling around various countries meeting people before retirement. I happened to learn about this incident and decided to step forward as a mediator.”

 

The Chairman performed a skillful act.

 

Nevertheless, Vice Chairman Gudin’s suspicion remained, and only then did I bring out additional conditions.

 

“Tiger Fund recently acquired a department store. We want to have LVMH brand luxury goods enter that store. Instead of mediation fees, we hope for LVMH brand entry into all department stores under Tiger Fund.”

 

“I see you’re planning to sell the department store at a high price by having our brands enter. Hmm, now I understand why Chairman Robertson came all the way to France.”

 

I had no intention of selling the department store at all.

 

But Vice Chairman Gudin didn’t think Tiger Fund would operate the department store.

 

Naturally, he interpreted it as trying to use LVMH’s brands to sell at a high price.

 

“It’s a very good condition, but LVMH brands don’t enter just any department store.”

 

“You don’t need to worry about that problem. Tiger Fund plans to spend large amounts on department store remodeling, and we’ve already made plans to focus investment especially on the luxury goods section.”

 

“I’ll guarantee it.”

 

Chairman Robertson’s single statement was the decisive blow.

 

An opportunity to profit several hundred million dollars with just one entry right to the very small market of Korea.

 

Moreover, with a Wall Street elder personally guaranteeing it, there was no reason to refuse.

 

“Good. Let’s do that.”

 

“We’ll deposit 700 million dollars as soon as the contract is drawn up.”

 

“The rest of the work will be handled by Tiger Fund, right?”

 

“That’s right. Tiger Fund will take responsibility for selling even the remaining 11% equity shares that LVMH holds. However, the profit will be Tiger Fund’s share.”

 

“Excellent! Let’s draw up the contract now.”

 

The contract was concluded quickly.

 

We both signed a contract that included acquiring 11% of Gucci equity shares for 700 million dollars and clauses for having the LVMH brands we wanted enter Midopa Department Store.

 

***

 

PPR, the French large corporation that emerged as Gucci’s white knight.

 

Like LVMH, they were a representative French luxury company acquiring various luxury brands.

 

There was just a difference in approach.

 

If LVMH was aggressive, PPR acquired luxury brands with a more friendly feeling.

 

PPR was the rebel army that rose against LVMH, which had already completed its empire.

 

Rebel armies were always anxious by nature.

 

They had no choice but to always keep a close eye on what movements the empire was making.

 

“Chairman! News that LVMH has joined hands with Wall Street’s Tiger Fund!”

 

“Where did this information come from?”

 

“Information from Wall Street. They say they sold 11% of Gucci equity shares to Tiger Fund. And Tiger Fund is already buying some Gucci equity shares released to the market.”

 

Francois Pinault, Chairman of PPR.

 

He exhaled deeply and maintained his composure.

 

“Even if a Wall Street fund is attached, acquiring Gucci is difficult. We already hold 40% of the equity shares, so no matter how much money they spend, they can’t reverse the situation.”

 

“But there are predictions that Tiger Fund is attempting to devour not just Gucci but all of PPR.”

 

“What does that mean?”

 

“They say Tiger Fund contacted various financial companies and expressed hope to acquire PPR equity shares.”

It was an unexpected attack.

 

I had never thought they would directly attack PPR instead of Gucci.

 

“No matter how much money Tiger Fund has, is it really possible for them to attack us directly?”

 

“It’s been assessed that they can use over 10 billion dollars in this acquisition war.”

 

PPR’s market capitalization was roughly 5 billion dollars.

 

If funds worth more than twice the market cap were moving?

 

It wouldn’t be easy to block. Even if they managed to block it, PPR would surely be left in ruins.

 

“Who from Tiger Fund is making the moves?”

 

“Chairman Robertson is personally directing operations from France.”

 

“If the Chairman himself has stepped forward, that means they’re serious.”

 

“The possibility is very high.”

 

Chairman Robertson was moving personally.

 

This fact alone made Chairman Francois feel Tiger Fund’s seriousness.

 

“I need to meet Chairman Robertson.”

 

“I’ll make contact right away.”

 

The war to seize Gucci.

 

But the center of the battlefield was shifting to PPR headquarters, not Gucci.

 

Before PPR entered the middle of the battlefield, they had to hurry and meet Chairman Robertson to start negotiations.

 

***

 

Every situation moved exactly as I had designed.

 

Of course, it was a plan made possible thanks to Chairman Robertson’s reputation.

 

By using the sincere bluffing strategy I learned from the General Manager, I was able to draw out PPR’s chairman in just one day.

 

“Nice to meet you. We’ve passed by each other a few times in the United States, but I think this is the first time we’re formally greeting each other.”

 

“It’s truly an honor that the busiest person in France these days has come to find me.”

 

“Not at all. It was only natural that I should come to see you.”

 

Chairman Arnault had a strong aristocratic feel.

 

But Chairman Francois, perhaps because he was self-made, gave off a strong businessman vibe.

 

That made it more comfortable actually. A businessman could never beat Wall Street’s hyenas.

 

“But why did you seek me out so urgently?”

 

“I heard the news that Tiger Fund has entered the Gucci acquisition war.”

 

“Just as PPR appointed itself as Gucci’s white knight, Tiger Fund could also become LVMH’s white knight.”

 

“But the Gucci acquisition war is as good as over. We’ve already secured over 40% of the shares, and no matter how much of the remaining shares you gather, it would be difficult to exceed 40%.”

 

He was certainly direct, as befitting a businessman.

 

But Chairman Robertson countered even more directly than Chairman Francois.

 

“If we can’t acquire Gucci, we just need to acquire the company that owns Gucci.”

 

“…Are you really considering acquiring PPR?”

 

“There’s nothing we can’t do. Isn’t Wall Street a place that does anything as long as there’s money in it?”

 

“We’ll only end up hurting each other.”

 

“But we’ve already acquired Gucci shares. And we can’t give up the hunt just because we’re afraid of getting hurt, can we?”

 

Chairman Robertson came on strong.

 

He made it clear that the hunt had already begun, and if they just backed down here, it would damage Tiger Fund’s and the Chairman’s reputation.

 

“Are you really saying you’ll go to the end?”

 

“It might be different if it were before we started, but now that we’ve begun, we can’t retreat without justification.”

 

“What kind of justification would we need to provide?”

 

A justification that wouldn’t damage their reputation.

 

Finding such justification wasn’t easy, and Chairman Francois couldn’t come up with it in a short time.

 

But we had prepared even the justification for him in advance.

 

“It’s awkward for me to say this myself, so the Deputy Branch Manager will explain it well.”

 

“Nice to meet you. I’m Lee Jung-hoo, serving as Deputy Branch Manager of Tiger Fund Korea Branch.”

 

“Let’s save the greetings for later, what kind of justification do you want?”

 

“If we acquire about 20% of Gucci shares at a premium price, it would make for quite good justification.”

 

It was a condition that was difficult to accept easily.

 

There was no need to additionally purchase Gucci shares when they had already acquired 40%.

 

There was absolutely no reason to purchase at a 20% premium either.

 

But from the moment they entered the negotiation room, no other options existed for them.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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