stjorthotic Chapter 321 Gaining a Company for Free
Chapter 321 Gaining a Company for Free
Chapter 321 Gaining a Company for Free
May 22nd, Sunday, 3 PM.
The afternoon sun slanted into the tall, bright windows, and dust particles floated in the beams of light, much like the unresolved fate of the shareholders.
Seven oak chairs were lined up on the stage. Dr. John, the 72-year-old gentleman and founder of Bausch & Lomb, sat in the head seat, leaning on his ebony cane.
His hair was completely white, but his eyes still retained a sharp edge.
He looked towards the direction of the auditorium entrance, as if waiting for someone, his eyes filled with no expectation, only a faint sadness.
Sitting next to him was Henry Len, one of the company's founders, who was originally supposed to be the second-largest shareholder. However, George Eastman had secretly amassed enough shares to make him the third-largest shareholder.
Henry Lunn's expression was also very solemn. His fingers unconsciously rubbed the worn gold button on his cuff, as if only in this way could he calm his mind a little.
The doctor's three sons sat next to the stage, each with their own expression—hesitation, disgust, or indifference—none of them had a pleasant look.
Below the stage, the other minority shareholders felt the same unease. They whispered amongst themselves, and the air seemed thick and heavy, as if glued together.
"I heard the Germans brought three acquisition contracts; they're determined to succeed."
"I don't know if it will benefit us, but I've also heard that that kid named Livingston really has someone backing him."
"Livingston is insane. If he blocks the German takeover, I think Bausch & Lomb's high-end glass business will definitely be shut down —"
"I think Bausch & Lomb will probably end up with the Livingston name now —"
The minority shareholders were buzzing with discussion, saying all sorts of things, but no one dared to reveal that they had already secretly contacted Goldman Sachs; they had seen the cautionary tales. Meanwhile, Mr. Reed sat alone in the front row, ignored by everyone in town because he was labeled an "insider."
Time ticked by, and the crowd whispered amongst themselves, glancing frequently at the grandfather clock in the corner. Everyone was anxiously awaiting the arrival of the main character in today's acquisition.
The younger son, John, was getting impatient. He turned to his two older brothers and asked anxiously, "It's strange, why isn't Livingston here, and why aren't the Germans here either? Are they still going to buy our company?"
"They will come—let's wait patiently." Dr. Louis said this, but his face was also solemn.
"Shut up! Can't you see that Father is in a very bad mood?" the eldest son scolded in a low voice. "No matter who ultimately acquires our company, Father will be heartbroken because it is the culmination of his life's work."
The three brothers turned to look at their father simultaneously. Old Dr. John's face was expressionless, but a bead of sweat trickled down his forehead and chin.
At 3:10, the door opened.
Everyone held their breath and turned to look at the door. Larry Livingston and Herzog walked in side by side, followed by a calm-looking Louis Schmeisser and George Eastman of Kodak.
There was no confrontation, no small talk. The four of them walked in together in unison, their leather shoes striking the floor with a crisp, rhythmic beat.
Like the Prussian army advancing with its iron hooves.
Seeing the four people walking in side by side, all the shareholders present, large and small, were stunned. Their minds went blank; they simply couldn't believe their eyes—two groups of people who had been fighting to the death just ten days ago were now walking in together.
The old doctor frowned, struggling to keep himself from standing up. Only when the group approached did he ask in a trembling voice, "What's going on? You actually reached an agreement?"
Larry, who was walking in the lead, smiled and turned to the other three, gesturing for them to sit in the empty first row of seats.
Once the three were seated, Larry said to Dr. John Sr., "Sir, this is not an agreement, but a mutually beneficial solution that we have found."
Larry then surveyed the room, his voice steady and resonant, "For the past two weeks, we've been tirelessly working on the future of Bausch & Lomb. But ultimately, we've discovered that our common ground far outweighs our differences: we believe Bausch & Lomb is a great company, and we should do everything we can to ensure its value is realized."
The hall was completely silent, all eyes fixed on the young, handsome face, waiting to hear what he would say next.
After pausing for a few seconds, Larry continued, "We've decided! My company will acquire Bausch & Lomb in its entirety, and then we'll break up Bausch & Lomb according to its functions and the principle of maximizing profits."
Split up Bausch & Lomb?!
As soon as these words were spoken, the entire conference hall erupted into chaos. People screamed and trembled like chicks startled by thunder.
"You not only want to acquire it, but you also want to break it up? My God!" Old John's face showed pain, and he pressed one hand to his chest.
Henry Lund jumped to his feet, exclaiming, "You're going to dissect it! Dissect this venerable giant and sell every piece of its flesh, is that it? Oh no!! That's too cruel!"
After the noise in the meeting room subsided, Larry calmly focused on the two founders, Bausch & Lomb, and continued, "Sir, our understanding of splitting up is different. This is not an dissection—you must know, in my mind, Bausch & Lomb is a very great company. But Bausch & Lomb is not a flesh-and-blood body, but a beam of light. Just like the light that the lens he spent his life grinding must carry."
Larry's voice silenced the auditorium once again, and even Dr. John, who looked pained, couldn't help but stare intently at Larry, waiting for him to continue.
"Since Bausch & Lomb is a ray of light, then if light passes through a prism, it will naturally split into seven colors like a rainbow. I don't see anything wrong with splitting Bausch & Lomb, because only in this way can everyone be satisfied—you know, whether it's me or Mr. Herzog from Zeiss in Germany, if we can't reach an agreement, then Bausch & Lomb will be dragged down—"
As he spoke, Larry turned to the minority shareholders and continued, "And if this company dies, the shares you all hold will be worthless—do you want this company to die?"
Dr. Louis stood up abruptly. "Are you threatening us?"
"No! Sir!" Larry turned around abruptly, looking at him with a serious expression. "I'm stating the facts. I understand how much the Doctor's family has placed on this company, and I also understand that the other shareholders all want this company to thrive—"
But gentlemen, time is like a wheel; it has to roll over unknown puddles—if Bausch & Lomb truly wants to survive, compromises must be made. Moreover, if splitting up Bausch & Lomb can better strengthen the entire company, I believe this isn't death, but a phoenix rising from the ashes!
Larry had already considered all the possibilities that might arise at today's shareholders' meeting, so he was naturally able to speak fluently and respond easily to the other party's questions.
At this moment, his domineering and high-profile speech did not offend the audience; instead, they were gradually won over by his momentum and logic.
Dr. Louis was speechless. He looked back at his father for help, but old John remained silent.
"Sit down, Louis," his brother instructed.
Louis then returned to his seat.
Larry took a document from his briefcase, stepped forward, and said to old John, "Dr. Sir, your life's work has been dedicated to the scientific eye. Therefore, the microscope and telescope business, along with all research patents and glass licenses, as well as the academic customer network throughout the Americas, will be completely transferred to Zeiss. They promise that thereafter, all high-end optical instruments sold in the Americas will only be Bausch & Lomb, and no other brand. Bausch & Lomb, as the eye of high-end academia, will be forever recorded in the scientific history of the Americas."
A flicker of shock crossed Old John's eyes. Wasn't this the goal he had sought all his life? His previous collaboration with Zeiss, which had relegated him to a lower-end brand, had always been a source of regret for him.
After Larry finished speaking, Herzog stood up at the opportune moment, bowed to the old man, and said, "Dr., the University of Jena will establish a joint award for doctoral candidates and Zeiss optics. Your bust will be erected in the main hall, making you a great figure whom the entire optics community looks up to."
The old man's throat moved slightly, and he nodded slowly.
Larry continued, "Mr. Lens, you have been in charge of operations for many years and know how important the consumer market is. We will be splitting off Bosch's camera, lens, and tinted lens technologies to Kodak. This is also the most important optical business, and Mr. Eastman has already signed an agreement to continue purchasing for the next five years, and you will become the general manager of the new company."
Henry Len was stunned. He had thought he would be ousted, but he never expected to get a real position in the new company, and even have Kodak as a powerful backer.
"As for you minority shareholders—" Larry turned his head, his gaze sweeping over the crowd, "my account will repurchase all the scattered shares at $42 per share, on the same terms: half will be paid within 48 hours, and the remaining half will be paid in full within a week. Because of the company split, you cannot retain your own stock, but you will receive preferred stock entitlements in the new company—"
Larry has made his point very clear: there will be no exceptions in this acquisition; everyone must contribute their stock. This is because the company will be acquired as a whole and then split up.
In other words, once the company goes through this acquisition agreement, the only way for everyone to realize their profits is to cash out.
Of course, Larry's price was very reasonable at $42, which is already a significant premium.
Mr. Reed suddenly stood up and asked in a trembling voice, "What about the military division? I heard in the newspapers that the Navy values Bausch & Lomb's military division very much."
Larry smiled. "I will take full control of the military component and other projects currently under development by Bausch & Lomb. This includes the factory, water supply, technical team, military projects, and laboratories—I will acquire them all. Subsequently, the military projects will continue to cooperate with Zeiss, importing their high-grade glass, and Zeiss will sign a business avoidance agreement, meaning they will not sell similar products to the United States."
These words caused an uproar in the room.
Reed exclaimed, "Then you're basically monopolizing the entire military market!"
"No!" Schmeisser, who had remained silent until now, suddenly stood up, his voice as calm as a scalpel. "You must understand, Bausch & Lomb's military project hasn't even been finalized. Whether it can be successfully developed remains extremely risky. Mr. Livingston is taking on this risk; only he can coordinate the Navy's order—we Germans have decided to respect American independence and autonomy, providing only technology and lens material manufacturing processes, without engaging in that market—"
The entire room fell silent once again.
At this moment, Dr. John Sr. finally spoke, his voice aged yet clear, "—So, Bausch & Lomb is dead?"
“No, sir,” Larry shook his head, speaking firmly to the founder, “it’s just a shell. The scientific part goes to Zeiss, the livelihood to Kodak, and the other risky assets to the United States. And the spirit of Bausch & Lomb will continue in the bloodlines of all three.”
He paused for a moment, then looked intently at the crowd. "Do you all think today is a funeral? No, it's actually a coronation ceremony—not for any one person, but for the dawn of an era of specialization!"
Henry Len took a deep breath, then suddenly raised his hand. "I support this idea!"
Old John remained silent for a long time before finally slamming his cane heavily on the ground. "Alright, a month ago I made up my mind to say goodbye to my child, Bausch & Lomb. Now—heh heh, it's just saying goodbye to one or three of them. If Bausch & Lomb can survive forever—I have no regrets."
The minority shareholders looked at each other in bewilderment. In fact, they had already received a guarantee from Goldman Sachs that the price was very favorable, and they could also buy preferred shares in the three new companies—this was quite a good deal!
Larry looked at the crowd and announced loudly, "$42 per share, I'm keeping that price unchanged. I will be buying your shares shortly. Please vote at the shareholders' meeting whether to approve the acquisition."
Larry is not a shareholder of the company, so even if there were to be an acquisition, it shouldn't be Larry who announces it.
But at this moment, everyone, like the herd of beasts bowing in reverence, looked up at the young lion king, and after the lion king roared, they all began to move in response—without feeling that anything was amiss.
One hand was raised, then two hands were raised—slowly, almost all the shareholders in the room raised their arms.
The last person to raise his hand was Dr. John Sr.
Larry nodded and announced loudly to the crowd, "Therefore, I hereby declare that Manhattan United Capital's acquisition of Bausch & Lomb is officially established!"
George Eastman stood up and led the applause.
Immediately, a wave of applause echoed through the auditorium, with everyone clapping in unison, applauding themselves and the handsome young man before them.
The applause carried far on this bright afternoon. Whitney, standing at the door, shook her head and exclaimed, "What an admirable young man—my God. His brilliance is blinding—I think Koster must be in despair."
Beside him, Sachs nodded silently.
After the applause subsided, the lawyers hired by the shareholders' meeting and Goldman Sachs began to enter, preparing for the signing ceremony and related acquisition legal documents.
As the supervisor of the funds account, Mr. Whitney also began his work, sitting down and starting to write checks for all shareholders to be cashed in two days.
Herzog stood up and extended his hand to Larry. "It's been a pleasure doing business with you. Thank you, Mr. Livingston."
"It's a deal, you're welcome!"
Hearing Larry's answer, Herzog gently shook his head and said, "I wasn't talking about Bausch & Lomb. You've made me realize that true victory isn't about possession, but about defining boundaries."
Larry smiled faintly and said nothing.
After the two Germans left, George Eastman came over, this time with excitement on his face, and gave Larry a fierce hug.
"My God, Larry, you've done something I never even dared to dream of! You've actually bought this company."
Larry laughed again, raising his eyebrows as he asked, "Then what about the 5% Kodak stock you promised me—"
"I've already prepared everything for you!" Eastman said sincerely.
Larry laughed.
Amidst the laughter, he looked around and saw that each person had a different expression on their face, all of whom were pleased with the acquisition. Although some people were unwilling, he had already put the life and death of Bausch & Lomb in his hands, so what did they have to be upset about?
Larry Livingston, well done! This is the first leveraged buyout in American, or even human, history. To date, he hasn't spent a single penny to acquire this company.
Larry said to himself.
All the money came from loans from the Morgan syndicate, and George Eastman's 19.8% stake was used as a stepping stone and leverage.
He not only didn't spend a single penny, but also obtained the Bausch & Lomb military project, which he valued most, as well as other film projects.
Once all the assets have been split up, he can easily sell them to realize cash and repay the money to the Morgan syndicate.
This is a classic case of getting something for nothing!
Unlike battling in the stock market, acquiring companies by taking advantage of opportunities and leverage is a more sophisticated and strategic approach.
And once he divested his other assets and obtained the military project he had been dreaming of—what should he call the company then?
Livingston Optical & Instruments, Inc.
No, no, keep it low-key. Don't include your name in the company name—even though I like the company abbreviation (OIC).
Hmm, let's choose a name similar to our surname, like Livermore Optics & Instruments Company!
This way, the company's abbreviation will remain unchanged!
Thinking about this, Larry smiled.
As the meeting drew to a close, the setting sun bathed the long table in its light. Dr. John Sr., supported by his three sons, left the room. Before exiting, he glanced back at the empty chairman's chair and sighed softly, "Times have changed."
Then, he turned around, leaning on his cane, and slowly walked out of the conference room, as if he had aged ten years in an instant.
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