Reborn American Giants

Aaron Elvis's eyes were fixed on the window. A bald eagle pierced the sky under the winter sunshine, spread its wings and flew high. Then in Aaron's sight, it passed over the headquarters building of the Bank of New York and disappeared...

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Turning around, in the large conference room, the company's board of directors was holding a heated meeting. Texaco's background was mainly the Rockefeller consortium and the Chicago consortium. As the helmsman of this huge oil giant, Aaron Elvis must

Be responsible for the interests of the company's shareholders.

Looking back on why he got involved in this acquisition station in the first place, Aaron was also a little confused...

Getty Oil Company is an American independent oil company founded by Paul Getty. In 1953, the company discovered oil fields in the Saudi Arabia-Kuwait Neutral Zone in the Middle East, making Getty himself the "world's richest man" in 1957.

1981 Getty Stone

The total revenue of the oil company reached US$13.252 billion, assets of US$8.536 billion, and net profit of US$872 million. It produced 21.18 million tons of oil and 9.3 billion cubic meters of natural gas that year. It is also a large company on the Fortune magazine's Fortune 500 list.

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However, everything disappeared after the death of Paul Getty. At the end of 1983, serious disputes occurred within Getty Oil Company. The Sarageti Trust Company, which held about 40% of the preferred shares in the company, and Paul, who held 12% of the shares,

The Getty Museum and the two companies forced the company's board of directors to amend the articles of association so that they could have a veto on the board of directors.

However, the company's board of directors refused to change and wanted to issue 9 million new ordinary shares and establish an employee stock participation plan. As a result, the preferred stock ratio held by the Saraghetti Trust Company and the Paolo Getty Museum would be reduced to 50%.

.The two companies then decided to "lead the wolf into the house" and use the power of external capital to force the Getty Company's board of directors to reorganize.

What Saraghetti Trust Company found was Penzer Company, an independent oil company that was smaller than Getty Oil Company. According to the ranking of American Oil and Gas Magazine, among the 400 oil companies in the United States, Getty Company ranked

14th, while Penzel's assets are only US$3.2 billion, ranking 32nd.

In mid-December 1983, Penzer Company first bought 600,000 shares of Getty Oil Company on the stock market at a price of US$79.1 per share. This was a small number among the more than 80 million common shares issued by Getty Company.

However, it opened a bridgehead for further actions. By the end of December, Penzel made an offer to Getty, willing to buy 20% of its shares, or 16 million shares, at a price of 100 yuan per share.

Penzer's chairman, Hof Lidke, declared that its purpose was to obtain more equity interests in Getty and to participate in the reorganization of Getty.

However, in fact, Penzel Company has already negotiated privately with Saraghetti Trust Company. Penzel Company will use the more than 16 million new shares it will receive plus US$2.6 billion in cash to join Saraghetti Trust Company.

With 40.2% of the preferred shares in the hands of Ragetti Trust Company, they will form a new "entity" to swallow up Gerty Company. In this new entity, Saraghetti holds 4/7 of the preferred shares, and Peng

Zell accounted for 3/7.

After discussion, Getty's board of directors agreed to sell 20% of the shares to Penzer and also agreed to sell 8 million treasury shares to Penzer at a price of $110 per share. The two parties reached an agreement.

However, at this moment, when the deal between the two parties was about to be concluded and they were about to open the champagne to celebrate, the energy giant Texaco suddenly intervened in the acquisition war between the two parties. Its offer was US$125.

Zell's price is still over $25, which is a big temptation for Getty Oil's shareholders.

In the end, Texaco first acquired 11.8% of the shares controlled by the Getty Museum at a price of US$125 per share. Then, Texaco made a deal with Gordon Getty, the trustee of the Sarageti Trust Company:

At 125 yuan per share, it bought 40.2% of the outstanding shares it controlled, totaling 31.8 million shares.

The Getty Company's board of directors believed that their agreement with Penzel Company had not yet been signed and came into effect. Now that they had a major customer like Texaco, their instinct to pursue profits drove them to unilaterally tear up the agreement with Penzel Company.

Series Agreement, instead chose Texaco, selling it 56.6% of its 88.5 million common shares. It then sold it 35% of its 79.1 million preferred shares at the same price.

Of course, Penzer Company would not see the fat fly away. On the one hand, they also raised the offer, and on the other hand, they sued the Delaware Court of Chancery, demanding that its agreement with Getty Oil Company be determined to be valid. During the first hearing

Before the meeting, it further demanded that Texaco pay it US$28 billion in compensation and also requested authorization to buy 8 million shares of Getty's treasury stock at a price of 110 yuan per share.

It also filed a lawsuit in Tulsa Federal Court, accusing Texaco of violating U.S. antitrust laws by merging Getty Company, and asking the court to stop the merger. It complained that the merger would push the merger of the oil industry into

The climax of the merger has further concentrated economic power in the hands of a few large oil companies. This merger will make Texaco the second largest oil company in the world by assets and by stone.

It is the third-largest oil company in the United States in terms of oil and natural gas production and has the second-largest refining capacity in the United States. If Getty is merged, there will be a number of mid-sized companies that will be merged by the six or seven large oil companies.

.It also emphasized that Texaco's acquisition of Getty made it cheaper for it to obtain other people's reserves than it was for it to explore and develop itself. This would not be conducive to promoting companies to engage in exploration.

…………………………

In a nearby reception room, Deputy Secretary of Energy James Schleant and Special Advisor to the Department of Commerce Bill Richardson were still waiting for the final results of the Texaco board of directors. The White House did not want to wait until the domestic economy had just improved a little.

When it first appeared, it was affected by news similar to the lawsuit between Texaco and Penzer Company.

Aaron withdrew his gaze. He grabbed the assistant who was busy clearing away the scattered documents on the table, and then asked all other irrelevant people to leave the conference room. Finally, he faced a group of people representing the power behind Texaco.

Shareholder representatives...

"Aaron, I have long said that we cannot get involved in this acquisition."

"But it's too late to say this now. The merger of the two companies has already begun, and the 51% preferred shares acquired in the early stages of the Saraghetti Trust Company and the Getty Museum Company have already been spent.

With a large amount of funds, we are already riding a tiger."

Aaron's words made the 14 old men representing the board of directors of Texaco sitting around whisper to each other. After a long time, an interest spokesperson representing the Boston Consortium cleared his throat, and after attracting everyone's attention, he said:

"We will not deny the legality of the acquisition of Getty Oil, but out of concern for our own interests, can we now withdraw and get our own money back?"

What? What are these old guys kidding? Now that they are backing away, Texaco is not just losing billions of dollars. Not to mention money and reputation, the only thing that is keeping this company from collapsing is

All that was left was the "confidence" of shareholders in Texaco. Once they learned that Texaco had given up on acquiring Getty Oil, Aaron couldn't imagine how Texaco's stock price would plummet.

He angrily crumpled up an analysis report in his hand and threw it into the trash can: "If we do this, do you see that the 14.7% of Texaco's stock you are holding now will be

It’s like a piece of waste paper…”

All the shareholders looked at each other in shock. It seemed that the storm outside was too strong now, so they had to continue to huddle together to keep warm...

Aaron sighed. The fate of Texaco now lies in the hands of the old men in front of him. If they decide to move forward with the acquisition, Texaco will become the only company after annexing Getty Oil Company.

After the energy giant Exxon, it is the world's energy giant that firmly ranks second.

It was at this time that Victor's feet stepped onto the floor of the Texaco Oil Company located at 47 Waffle Street, which was so polished that a human face could be printed on it.