MTL - Reborn Capital Empire-v2 Chapter 763 Phoenix Merrill

Chapter 763 Phoenix Merrill

…

Facing everyone's gaze, Guo Shouyun strode to the center of the desk in the conference room and sat down. Wang Jue and Wu Xiaojing sat behind him. Stephen Bryan brought a representative of Phoenix Bank, Michael Moretz brought a representative of Merrill Lynch, and Liu Zhixing brought a representative of the Bruce Foundation to their seats one by one.

everything's ready!

After his eyes quickly swept across everyone's faces, Guo Shouyun said solemnly: "Welcome to the Phoenix Merrill financing meeting. You and I are friends who have known each other for many years. Time is precious, and the tasteless hospitality will be avoided here. Wait. It's over, we still have enough time to communicate with each other. ... Next, let's get to the point."

Without waiting for Guo Shouyun's order, Wang Jue and Wu Xiaojing have distributed the detailed operating information of Phoenix Bank and Merrill Lynch, especially the copies of the financial information, to every consortium representative present.

"There is a lot of information, you can take it back and read it in detail! Today, we will briefly introduce the general operation and financial statements of the two companies to set a tone for the subsequent negotiations."

After seeing the gesture in his eyes, Stephen Bryan nodded and took out the materials he had prepared.

"As of the first quarter of 2005, Phoenix Bank achieved operating income of US$12.249 billion, a year-on-year increase of 13.5%, net profit of US$3.671 billion, a year-on-year increase of 11.3%, return on net assets 21.57%, return on total assets 9.73%, and capital adequacy ratio 12.07%, of which the tier 1 capital adequacy ratio is 12.41%. The non-performing loan ratio is 0.65%. The total bank assets are 698.37 billion US dollars.”

“…Currently, Phoenix Bank has 4,277 branches throughout North America, covering almost all financial segments including commercial banking, investment banking, financial credit, wealth management and insurance. Our private equity investment business has grown over the past three years 12.8 times more than all peers in the world. Our wealth management and asset management business has repeatedly made the front page of business media such as Business Week and Fortune Magazine. Our venture capital business, especially for high-tech Investing in the industry has always been a model for Wall Street and Silicon Valley to follow.”

"...In addition, the greatest wealth of our Phoenix Bank is our chairman. His financial talent has been vividly reflected in many incidents in the past five years! Therefore, I believe that the future of Phoenix or Phoenix Merrill is inevitable. Limited!"

Guo Shouyun, who was suddenly flattered, smiled and motioned for Michael Moretz to take over.

"As of the first quarter of 2005, Merrill Lynch had total assets of $179 million, including $132 million in private client business, $557 billion in global asset management, $22.78 billion in shareholder equity, and $9.5 billion in net income. US dollars, net profit of 1.73 billion US dollars.”

"Currently, Merrill Lynch has 975 branches and 48,000 employees in 44 countries around the world. The company has a total of 49 business units. At present, we are the world's largest economic company and the world's second largest mutual fund company. Mergers and acquisitions in the United States No. 1 in business, No. 1 research team in the United States by Institutional Investor magazine, No. 1 in municipal traders. Best international stock research institution of the year and most innovative derivatives trading by Euromoney magazine Institutions, best economic companies, best European and global bond lead underwriters. Japan's leading foreign securities companies selected by "Nikkei Survey", etc. Merrill Lynch, with a history of nearly 100 years, is not only rich in heritage, but also the world's top A comprehensive investment bank!"

After his introduction, Guo Shouyun quickly swept his eyes from everyone, "Everyone, I believe you have heard it. If Phoenix and Merrill merge, it will create a company with total assets exceeding 2.5 trillion US dollars and annual main business income exceeding 75 billion yuan. US dollar, annual net profit of more than 16.8 billion US dollars, and its own assets of more than 90 billion US dollars. It is a super financial giant that occupies a dominant position in many sub-fields such as private equity financing, wealth management, asset management, financial product research, municipal bonds, etc. Yes! Imagine what the market will be after such a financial group goes public!"

"...I believe that when that moment comes, every one of us present will be rewarded handsomely!"

"Clap...!"

After a period of not too warm applause, Guo Shouyun continued: "About the merger plan of the two companies! The detailed plan is already in the document given to you, you can go back and read it again. In short, it is a strong alliance, Give full play to their respective strengths and make Phoenix Merrill Lynch a brighter future. Regarding the leadership of the company, I am the chairman of the board, Stephen Bryan is the CEO, Michael Moretz is the co-CEO, and Ruben Destein is the CEO. President and COO, with Patty Sellers as CFO...!"

More than half of the top executives of the new company are Phoenix people. Except for Gregory Fleming, Peter Krause, Thomas Montag and a few capable cronies who are not Stan O'Neill, Merrill Lynch's top executives were retained. In addition, the rest were fired by a paper contract.

"...In addition, I always think that Merrill Lynch's 'management committee' system is very good, so I plan to keep this system. As for the specific personnel, it will be decided after the meeting and discussion after the merger of the two companies."

Merrill Lynch's management committee system is the company's decision-making body. The members are all senior executives of the company. There are 23 people! Teamwork ensures Merrill's continued growth. Of course, there is no truly perfect system in the world, otherwise Merrill Lynch would not have suffered heavy losses in the subprime mortgage crisis and was acquired by Bank of America.

However, compared with the management system in which the CEOs make a decision, the collective management system of Merrill Lynch's "management committee" is more recognized by Guo Shouyun.

"...As for the company's board of directors, among all the institutions present today, those who own 1% of Phoenix Merrill's shares have the right to send representatives to the board of directors. The number of directors on the board of directors will be limited to 25-30!"

"...specific financing standards. Now the largest financial institution in the United States is Citi. Its revenue in the first quarter of this year was 22 billion US dollars, its net profit was 7.46 billion US dollars, tier 1 capital was 79.4 billion US dollars, 2.1 trillion in total assets, 21.7% Net profit growth, 37.2% return on investment. P/E ratio of 22 times, market cap of $253.7 billion.”

"The second largest financial institution is Bank of America, with revenue of $15.2 billion in the first quarter of this year, net profit of $4.96 billion, Tier 1 capital of $61.4 billion, total assets of $1.6 trillion, 18.7% increase in net profit, 31.2% ROI. 19 times earnings, $191.7 billion market cap.”

"The third largest financial institution is MG Chase, with revenue of $12.7 billion in the first quarter of this year, net profit of $3.96 billion, Tier 1 capital of $54.4 billion, total assets of $1.4 trillion, a 19.3% increase in net profit, and a 29.2% increase in net profit. ROI. 18 times earnings, $152.3 billion market cap.”

"In comparison, Phoenix Merrill's revenue in the first quarter of this year was US$19.749 billion, net profit was US$5.4 billion; Tier 1 capital was US$90.7 billion, total assets were US$2.57 trillion, and the comprehensive net profit growth rate was 20.97%. Citi, our key figures are no worse than any bank, and we even far surpass Citi in terms of Tier 1 capital adequacy and total assets."

"According to Phoenix Merrill Lynch's comprehensive operations and various financial data, we believe that Phoenix Merrill Lynch's market value should be around $220 billion. In view of the special circumstances of this financing, I am willing to use a 90% discount as the basis for the Let's talk."

The estimated market value is 220 billion US dollars, a 10% discount is 198 billion US dollars!

After everyone in the audience exchanged glances, Goldman Sachs CEO Blank Fein spoke first.

"Bruce, I think Phoenix Merrill's estimated market capitalization is a bit too high. First, Phoenix Merrill's $5.4 billion in net profit does not represent a sufficient advantage compared to Bank of America's $4.96 billion net profit. Second, Citibank's equity multiplier The number is eleven, Bank of America's is ten, and Phoenix Merrill's combined equity multiplier is fourteen, which undoubtedly means that Phoenix Merrill's $2.5 trillion in total assets contains a higher risk than Citi."

The reciprocal of the shareholders' equity ratio is called the equity multiplier, that is, how many times the total assets are the total shareholders' equity. The equity multiplier reflects the size of a company's financial leverage. The larger the equity multiplier, the smaller the proportion of capital invested by shareholders in assets, and the greater the financial leverage.

"...So, I think Phoenix Merrill's estimated market capitalization is more reasonable between $180 billion and $200 billion!"

"I agree with Mr. Fein's point of view. In addition, today's financing is not just a simple financing~www.novelbuddy.com~ There are also certain over-the-counter factors. Taken together, the valuation of Phoenix Merrill Lynch and the price discount Should be better." Bear Stearns representative Charles Prince.

He was also in the Schiff and Citi camps at the beginning, but in the end he was unable to resist the temptation of financing after the merger of Phoenix-Merrill Lynch, so he was pulled over by Blank Fein. Now, the two sides clearly have the appearance of a united front.

As for the over-the-counter factor he mentioned, it is nothing more than becoming a shareholder of Phoenix Merrill Lynch, and we must mobilize our own strength to promote the merger of the two companies, which will undoubtedly be opposed to the merger of Phoenix and Merrill Lynch with Schiff, Citi, and ING Group. The big institutions are competing against each other, and a lot of energy and even financial resources will be spent in the middle!

"Everyone, my conflict with Citi, Schiff, ING Group and other institutions is not a secret, and I believe you are all aware of it. It is precisely because of their opposition that I took a lower discount in Phoenix Merrill Lynch's financing. Let. Otherwise, wouldn’t I keep the tens of billions of dollars of wealth in my own hands?… I hope everyone understands that making money comes at a price! As for the difference between me and you in the estimated market value of Phoenix Merrill Lynch, we can’t talk about it now. It's too early. When you read the information you have and have a better understanding of Phoenix Merrill's situation, it's not too late for us to discuss this matter! However, in view of the current external situation, I will only give you Two days. In two days, I hope to hear more constructive comments!"