United Group is famous, and even United Motorcycle's Fast and Furious series has shown its face in New York this time, which is no less than Harley in the United States. Wall Street has long been thinking about whether it can get a share. Al Smith and several major investment banks have invited United Group to list in the United States more than once, believing that this is worthy of United Group's identity, and at the same time, it said that it would pay a good price for the shares. However, Contini always considers that the company is still in the expansion stage and will wait until the situation stabilizes before considering this matter.

However, he did not completely refuse. After all, some industries can be split and listed. The most interesting thing in the capital market is United Motorcycle. Goldman Sachs in this era is still a very conservative family business, but Merrill Lynch is already a giant investing in the securities industry, and its headquarters is in New York. It is impossible not to give Merrill Lynch a little sweetness. In addition to Merrill Lynch, there are also JP Morgan, Lehman Brothers and Bear Stearns, who had just been established. When they think of the tragic decline of Merrill Lynch, Lehman, and Bear Stearns, who had experienced the economic crisis in 1929, Contini sighed.

However, now it hasn't even arrived in 1929, and as for 2008, it's an even more distant future.

The financing bank Antonio first looked for this time was Citi, and Citi attaches great importance to this negotiation, and Contini chose Citi to negotiate first and carefully considered:

First of all, because Citibank was not the later giant at this time, it is just a medium-sized bank reorganized by New York City Bank. Since he wanted to give Al Smith face, he had to start the talks with the local snake in New York State. Citibank also received a greeting from the governor and negotiated the negotiations as much as possible;

Secondly, because Citi's idea was relatively open at this time, although it was not allowed to open branches across states in the United States at this time, Citi clearly did not be restricted by this ban. Instead, it opened branches in Singapore, the United Kingdom, China, Hong Kong, Japan, the Philippines and India. Contini believes that if Citi wants to open branches in Italy, it can provide convenience.

Third, because Citi is currently jointly controlled by the Stirman family and the Rockefeller family, and United Group has just signed a contract with Standard Oil, which is almost a transfer from the left pocket to the right pocket for Citi, and the security will be fully guaranteed.

Therefore, negotiations are a package of strategic cooperation: on the one hand, it discusses the possibility of Citi's implementation in Italy, and on the other hand, it discusses the possibility of Citi as a major financing bank in the United States.

The former cooperation intention was quickly reached, while the latter cooperation intention encountered a little twists and turns.

"You want to use some of the stocks as collateral for loans?" Citi's vice chairman in charge of negotiations said hesitantly, "but the stock price fluctuates greatly. If you are not careful, you may cause a position cut, which is not good for both parties..."

"It's true in theory, but it depends on what stocks it is." Antonio proudly opened his handbag and took out a large stack of warrants. "This is a scattered stock of 1 million American radio company stocks, with a market price of $41... We think it's easy to rise by $50!"

Arcoleman's eyes were straightened when he saw these 1 million American radio stocks: All people on Wall Street knew that the most powerful bull stock this year was American Radio. It started to rise from a little over $2, and now it has reached $40. Even so, there is almost no sign of a pullback, and the daily trading volume is very small - all investors are holding it tightly and unwilling to let go. If Citigroup buys 1 million shares now, it will ensure that the stock price can be broken through the $100 mark in an instant.

“How much do you want to borrow?”

"$40 million." Antonio raised four fingers, "using these 1 million shares and 50% of United Motorcycle's equity as collateral."

"I'm afraid this is not enough, because even if we accept stock mortgages, we still have to discount..."

"Okay..." Antonio smiled and took out another stack of equity warrants, "Add 500,000 shares of GM!"

General Motors is also a big bull stock... Arcoleman swallowed his saliva and cursed in his heart: Why are Italians so lucky? Why are all bull stocks in their hands?

"this……"

"Not yet?" Antonio smiled. "Our contract with Standard Oil is worth $4 million. We can not mention the 4 million and directly allocate it to Citi. If the contract is only 1 million, then the other 3 million will not need a loan."

"Can we also bear the business you handed over to Wright?"

In fact, Arcoleman also wanted to take down Westinghouse and General Electric's business, but he knew that this was impossible. Without a shark, he wanted to eat alone on Wall Street. It would be bad if he attacked him in groups. Wright's order is not large, so he would eat it after eating. Standard Oil's business is what Citi should eat, and he is not polite about this.

In this way, the collateral submitted to Citigroup exceeded 60 million US dollars, while United Group could only withdraw more than 30 million. Arcoleman thought about it and believed that the risks were basically controllable - it was almost impossible for the two stocks of the United States Radio and General Motors to fall by half in a short period of time. So he said cautiously: "Yes!"

"Then let's talk about interest..." Antonio smiled, "We've inquired. The current standard interest rate in the US market is 5-5.5%, and the 3-year period is lower. However, considering our amount, should we give a discount?"

"My authority is only 5.1%.

“4.8%!”

"5%! The minimum is not enough..."

"4.9%! It can't be higher. After all, I still have to provide assistance for Citi's landing in Italy." Antonio said, "If it doesn't work, I have to go to Chase Manhattan Bank?"

When he heard Chase Manhattan, Arcoleman frowned: Chase Manhattan is the industry of Morgan Group. Now Morgan and Rockefeller are evenly matched opponents. It’s nothing if Citi lost to Chase Manhattan alone, but if Rockefeller lost to Morgan Group, then he would be in trouble as the vice chairman.

He struggled for a while and finally said, "I'll go and ask the board for instructions, and I personally agree."

This sentence is enough. Antonio laughed and stood up and said goodbye. If it were Contini's negotiations, he would definitely stop at 5%. Don't underestimate the 0.1%. 40 million yuan a year means saving 40,000 US dollars - enough to buy more than ten Cadillacs and give them to others!

The next day, Citi came to the news: Sign! The only requirement is to keep it confidential, and Citi didn't want to be the target of public criticism.

United Group naturally agrees with this, and Contini doesn't want to be very arrogant.

After signing, Contini and Antonio laughed - they had a total of 4 million American radio stocks in their hands, and they put 1 million in Citigroup, and there were 3 million to continue to be used as collateral.

On September 3, United Group and Bank of America signed a strategic cooperation agreement: a loan of US$35 million, with a better condition than Citi, with only 4.8% interest. It is not because Bank of America is better speaking, but because Bank of America is not only larger than Citi, but also Bank of America was originally an Italian bank run by Italian immigrants. In the early days, it mainly operated the deposit and loan business of Italian immigrants in various states along the Pacific coast. It felt more like the domineering president's powerful strength in Italy, so he gave another 0.1 percentage point, and these tens of thousands of dollars were regarded as laying the foundation for the country... By the same token, this agreement is also secretly ignored.

On September 7, United Group and Chase Manhattan signed a contract. Although the outside world is confidential, it is impossible to keep it confidential all the time. Of course, giants like Morgan have to get a share. Besides, you have a loan from Citigroup, Bank of America, don’t you come to Morgan to borrow? Do you look down on us? Besides, Contini’s loan is better than the more loans, so he borrowed $45 million from Chase Manhattan.

After a while, he received a total of US$120 million in loans. Not only did the United Group's orders and equipment to be purchased in the United States were mortgaged, but United Steel, United Shipbuilding, United Motorcycle and others were also mortgaged. In addition to the mortgage required by the market, Contini also mortgaged the nearly US$300 million in stocks in his hands.

In other words, except for the small amount of $100 million, the domineering president is under the control of Wall Street. Now United Group works for Wall Street tycoons - not only can't make money, but also has to pay nearly 6 million interest a year!

Antonio thought it was strange: Why did the young master only borrow for 5 years? Shouldn’t he borrow for 10 or even 20 years? The longer the better it is to make a smooth transition and save you from always transferring loans.

Contini only smiled but didn't say it. He was the only one who knew the real reason: it is 1924, and 5 years later, well...1929!
Chapter completed!