Chapter 2749: Take What You Want

"I have no problem with that. Your investment is welcome," Lauder immediately agreed.

As soon as Feng Yiping looked forward, he knew that in the week after Lehman collapsed, their lives would never be easy, and they would face the same life-and-death test as Lehman today.

If Feng Yiping is willing to acquire their shares at this time, it is naturally a good thing, and it is a double good thing.

First of all, they got more funds, and secondly, who doesn’t know Feng Yiping’s good vision now?

If Feng Yiping invests in them at this time, the effect will definitely be better than Buffett investing in them at this time.

Everyone knows that Buffett has made mistakes after all, but Feng Yiping, so far, has not made any mistakes.

In other words, Feng Yiping's purchase of Goldman Sachs' shares at this time will definitely greatly encourage investors' confidence in Goldman Sachs.

"But, what about the conditions?" He followed up with another question.

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

Not to mention that they only have a cooperative relationship. At this time, even a father and son or a husband and wife would not risk supporting each other by tens of billions of dollars like this.

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

Buy preferred stock?

Lauder thought for a moment and realized that such a request was really nothing. "It's not a problem. It's just that it can't be 10 billion US dollars?"

"10 billion U.S. dollars, 20 billion U.S. dollars, both are fine," Feng Yiping said, "But haven't you been asking about the conditions? It's not too late to discuss this after hearing my conditions," Feng Yiping said.

"Okay, you continue,"

Lauder also felt that Feng Yiping’s investment of US$5 billion would be unrealistic if the only requirement was preferred shares.

"I require that these US$5 billion preferred shares enjoy a fixed dividend of 10% every year,"

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

No wonder he asked himself to listen to the conditions. If he invested 10 billion, he would be paid a dividend of 1 billion US dollars every year. This figure undoubtedly made him feel a little sad.

But he thought about it for a moment and said immediately, "That's no problem!"

Frankly speaking, it is really difficult to obtain financing now. Lending among peers is almost extinct. Even if it can be dismantled, the interest rate is also unbelievably high.

In the current situation, a fixed dividend of 10% is low, but certainly not low, but it is by no means high.

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

"Not now," Feng Yiping said immediately, "You know, I am still in India, and there are still some important tasks that need to be dealt with here. When I get to the United States, I will inject capital immediately,"

Only a fool would invest now if they knew that Goldman Sachs' stock price would fall in the next few days.

"I didn't say it was now." Lauder knew that he would definitely not be able to take advantage of Feng Yiping. "When will you arrive in the United States?"

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

Lauder said to himself, you should mainly look at the situation on Wall Street. If our stocks don't take a plunge, your work in India will not make any progress. "Okay, then..."

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

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

Because it sounds like the conditions are still unfinished.

He took a deep breath, "You continue,"

At this time, it is really rare to see big investors with a total investment of US$5 billion or US$10 billion.

"I requested, and also received, $5 billion in call options on Goldman Sachs common stock in the next five years. The price will be agreed upon when we sign the agreement in a few days. Of course, you also know the practice. This price will be higher than your stock price in due course. Go lower,"

This time, Lauder didn't say anything.

The so-called call option means that the option holder has the right to buy but not the obligation to buy during the agreement period.

For example, when they sign an agreement today, if the agreed-upon stock price is US$100, then he will definitely not buy it if it is estimated to be lower than US$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 stock of $150 per share for $100 per share.

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

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

Then, give him shares of corresponding value.

Although the proportion of shares held in this way is far lower than the proportion of shares held after exercise, the benefits are obvious: you can get the shares for free without paying a penny.

There was still no sound from Lauder's side, so Feng Yiping asked, "Are you still there?"

Lauder's voice came over, a little muffled, "Are you done?"

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

Laud was really a little angry, meaning, you are not done yet?

Are you done yet?

Who just kept saying that it was just to help, no conditions, no conditions?

Well, he is a big money sponsor, and he is a very influential big money sponsor. His investment in Goldman Sachs, as long as it is publicized, can be interpreted as a vote of confidence in Goldman Sachs, which will help him to survive the crisis safely...Laud comforted himself.

"First of all, you have to invest at least 5 billion US dollars, up to..." Laud looked at the men gathered at the table, "We will not cap it for the time being, and we need to see the current situation and our needs,"

"No problem, 30 to 50 billion US dollars, just talk," Feng Yiping said lightly.

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

Well, it's really amazing to have so much cash at this time.

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

But do you need to show off like this?

Forget it, I won't bother with you for now.

"But we have the right to redeem your preferred shares at any time," said Lord.

After the situation improves, a fixed dividend of 10% per year is always not cost-effective.

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

Lord did not object, this is also a precedent, "I know, what is the premium you want?" He asked.

"Also 10%," Feng Yiping said immediately.

This means that they have to spend 5.5 billion US dollars to redeem.

"It's a bit high, 7% is more reasonable," Lord bargained.

"10%, it's a very reasonable ratio," Feng Yiping refused to give in.

After several rounds, Lord gave up, "Then 10%,"

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

"So, what about the call option?" Feng Yiping asked.

Lord looked at his men.

Seeing him looking over, the leader didn't smile much, but still nodded.

"I have no objection to that part either," said Lord, "and thank you for your confidence in us."

In fact, Lord would have agreed to Feng Yiping's part of the request without the help of his bankers to calculate.

As the name suggests, Feng Yiping made this request because he was sure that Goldman Sachs' stock price would rise in the future.

Such a request would also encourage investors' confidence in Goldman Sachs. Look, Feng Yiping is sure that Goldman Sachs' stock price will rise in the future.

"After so many cooperations, I certainly have confidence in you and the Goldman Sachs team," said Feng Yiping.

"Also, Lord, I think you should know that the reason I did this today is really to help Goldman Sachs,"

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

Now, Lord's subordinates who originally thought that Feng Yiping had too many demands and took advantage of him endlessly felt a little guilty for a while.

Yes, when will Feng Yiping take the 10% return on investment seriously?

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

"Did you forget that I haven't finished yet?" Feng Yiping interrupted him.

Lourdes let out a breath, "Please continue,"

"Don't be impatient, the last request is that there must be a representative of mine on the Goldman Sachs board of directors,"

Lourdes almost subconsciously wanted to say, this is impossible!

He felt that Feng Yiping's most important condition might be this condition, a board seat, which means that Feng Yiping will know a lot of Goldman Sachs' arrangements.

Feeling his silence, Feng Yiping immediately said, "Come on, Lourdes, go out and ask, 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 tell you, this is just you, if it's Morgan Stanley, I won't go even if they pay me to go,"

Lourdes was speechless for a moment, and his several subordinates were also speechless.

Making Feng Yiping a long-term shareholder and a member of the board of directors is indeed something that many companies can't do even if they spend money.

"We agree," Lourdes said with a bit of a hoarse voice.

Although this was good news for them, he always felt uncomfortable. It was really like he was being manipulated by Feng Yiping.

…………

In Mumbai, Feng Yiping put down his phone and breathed a sigh of relief. Wu Qian quickly handed him a glass of water. Feng Yiping took two big sips and made an OK gesture to his subordinates who were looking forward to it.

"Yeah!" Everyone shouted excitedly.

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

Lourdes leaned back in his chair a little tiredly and briefly introduced it to him.

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

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

Lourdes nodded, otherwise I wouldn't agree, "Oh, by the way," he almost pulled Paulson's sleeve, "We have to talk about AIG,"

Paulson frowned again...