Winthrop Rockefeller and Crewe Humphrey of the Boston Financial Group met with Li Jianxi together. In view of the seriousness of the matter, some ugly things needed to be said publicly beforehand.
Three people sat across from each other, each with their own agenda.
Winthrop Rockefeller looked at Crewe Humphrey and stared at the roof. He had no intention of speaking first and could only break the deadlock by himself;
"President Li, well, regarding the severe situation faced by Samsung Electronics, the consortium is ready to lend a helping hand after discussion, but it will not be without cost. I hope you can be prepared."
"I fully understand this and thank you for your valuable financial support during difficulties."
For Li Jianxi, he is almost at the end of his rope and has no choice at all.
After experiencing the financial crisis from 1997 to the end of 1998, Korean Peninsula Banks were silently licking their wounds, failing to truly recover and unable to issue large dollar loans.
In European and American society, the Internet high-tech bubble burst on March 14, 2000, and victims were everywhere.
Many high-tech Internet startups in Silicon Valley were weaned, and their originally high valuations were instantly worthless. Nearly 90% of startups died in the cold winter.
The U.S. stock market alone has lost $5 trillion in market value, and more than a thousand banks, large and small, have collapsed.
early 2001
The chain reaction caused by the bursting of the Internet high-tech bubble and the consequences of the evaporation of huge wealth have been passed on to the U.S. real estate market.
Many real estate companies with glamorous appearances collapsed, and countless middle-class people became abjectly poor overnight, losing their jobs, their comfortable lives, their houses and their dogs.
Under such circumstances, the US-funded consortium still has confidence in Samsung Electronics and is willing to lend a helping hand. Can Li Jianxi expect more?
Winthrop Rockefeller continued;
"Your planned 12-inch wafer fab construction plan has been rejected. It is crazy to still increase investment under such circumstances. The Mi-funded consortium cannot convince everyone."
This news was like a bolt from the blue. Li Jianxi was stunned for a moment. He rushed forward eagerly, grabbed Winthrop Rockefeller's arm and said;
"Mr. Winthrop, this...
This decision will cause Samsung Electronics to lose the opportunity to catch up with its rivals. You know, today's electronics industry is developing at a rocket-like speed, falling behind one generation every 18 months.
The 12-inch wafer fab is crucial for Samsung Electronics to maintain high-end R&D capabilities, promote advanced processes, and closely follow the footsteps of competitors!
Moreover, the world's advanced level is in the 12-inch wafer fab, so it is indispensable for technicians to be familiar with it, find out production methods to improve yield, and accumulate production line operation level.
This is related to the production cost of a single memory chip, and is also related to the international competitiveness of Samsung Electronics.
Please do whatever it takes..."
"Shut up!"
Crewe Humphrey was so angry that he shouted and stopped Li Jianxi's remaining words;
This damn kimchi-smelling Han Bangzi is like a greedy gambler, squandering huge amounts of money from the American consortium without feeling any heartache. That’s tens of billions of dollars!
After Senator Michael Bay intervened to mediate, there was a split within the US-funded consortium over the continued injection of capital. Damn Kenneth Wray was unwilling to pay his share no matter what.
To put it bluntly, this bastard is not optimistic about Samsung Electronics at all and wants to jump ship alone!
The US-funded consortium, which came together because of interests, was always wary of each other, and the negotiations almost broke down completely.
at last
The Rockefeller Foundation and the white old-money coterie represented by Senator Michael Bay jointly funded and acquired part of Cisco to avoid the final breakup.
Crewe Humphrey couldn't suppress the anger in his heart at all, and scolded;
"You are simply a true gambler, betting all your chips on bullshit counter-cyclical expansion. Please remember that Samsung Electronics died once, and we saved you.
Now, you are playing this game again, but it is our chips that are on your side.
Do you know how much Mr. Winthrop Rockefeller paid to continue to inject blood to Samsung Electronics in order to reach the current agreement?
No one thinks favorably of you, and I mean everyone.
Under such circumstances, Mr. Winthrop Rockefeller still provides you with valuable support, whether in technology transfer, market access, scientific research or funding, it is the greatest support without reservation.
And what did you do?
How can we repay our generosity?
Don't just stretch out your hand and be greedy and want this or that. Let us all be more mature. We are not like children who see candy in other people's hands and desperately want it ourselves.
Look outside, Washington National Bank has also been merged by HSBC, and now the whole world is short of money..."
"Crew, stop talking." Mr. Winthrop Rockefeller said to Li Jianxi with a sincere face;
"President Li, I understand your feelings and your unparalleled feelings for Samsung Group and Samsung Electronics. I hope to single-handedly bring them into the ranks of the world's top companies.
However, let us look at the problem calmly and objectively.
Even with the full support of the US-funded consortium, Samsung Electronics cannot completely defeat its opponents and drive them out of the market.
What does it matter whether you are first in the world or second in the world?
No matter what, Samsung Electronics must survive first. This is the most important thing. Then, we can talk about whether to give its competitors a show of strength.
The Wang Consortium is an enemy that cannot be underestimated. Facing this competitor is also a sign of respect for the competitor.
I believe that Samsung Electronics will never admit defeat, so I will fully support you. I hope you will not let me down."
…
One of the two people is a good person, and the other is a bad person. In the final analysis, they are still unwilling to take risks.
As a veteran in the business world, Li Jianxi knew this trick very well, but he was completely powerless.
He asked with a sad smile; "How much support can we get?"
"I persuaded my partners with the greatest sincerity to allocate 1.5 billion US dollars for scientific research investment, and then raised no less than 6 billion US dollars to support Samsung Electronics to tide over the difficulties." Mr. Winthrop Rockefeller continued; "This
The money will be obtained in the form of bridge loans from Citibank, Bank of America and HSBC, but Samsung Electronics will have to pay 6.5% interest every month."
Li Jianxi was speechless after hearing this, which meant;
The U.S.-funded consortium has completely distrusted the Samsung Group, and they are holding back.
The form of bridge loan is that a bank controlled by a US-funded consortium obtains a loan from the above-mentioned large multinational bank and on-lends it to Samsung Electronics. It is a type of secured loan.
Once Samsung Electronics goes bankrupt, this guaranteed loan will have priority in repayment, taking precedence over the claims of all shareholders of Samsung Electronics and other banks.
For the US-funded consortium, there is no need for more equity.
Because they hold 54% of the preferred shares of Samsung Electronics and can earn more than 80% of the profits, it is completely meaningless to continue to increase their shareholding. Instead, they will accumulate risks.
At the same time, as Han Bangzi's equity continues to weaken and he actually works for a US-funded consortium, his sense of responsibility will naturally weaken sharply, which is what the major shareholders are most worried about.
The subsequent bridge loan has a monthly interest rate as high as 6.5% and an annual interest rate as high as 7.8%, which is equivalent to peeling off another layer of skin on Samsung Electronics.
After the Internet high-tech bubble burst, in order to stimulate the economy, the Federal Reserve Bank of the United States lowered federal interest rates three times in 2000 and the fourth time in February 2001, to 3.25%.
In comparison, 7.8% is almost more than double.
However, the weak have no choice.
Li Jianxi could only knock out his teeth and swallow blood, silently accepting this unequal condition.
Samsung Electronics!
The road ahead will be even more difficult. Not only will we have to face strong competitors, but our major shareholders will also have to peel off another layer of skin, making our future increasingly bleak.
"We...when can we get this loan?" Li Jianxi's voice was difficult.
Mr. Winthrop Rockefeller smiled and said: "Quickly, my friend, the bridge loan is a bit troublesome to apply for. I believe it should be done within two or three months, which leaves us with more preparations."
time."
"Two or three months?" Li Jianxi was really desperate. This time was too long. "Well, can we get the loan out as soon as possible? The company is really in a difficult situation. After a little bit of profit was withdrawn, the bank demanded repayment of the loan. Samsung
The group has little liquidity."
Mr. Winthrop Rockefeller suppressed his smile, stared at Li Jianxi with a pair of gray-blue eyes, and his words were cold; "President Li, we are not nannies, and we will not do everything for you. Also,
I want to remind you that there is not much time left for Samsung Group. You must show your value, otherwise, I cannot stop my friends from dismantling Samsung Group and selling it."
At this moment, Li Jianxi's self-esteem had been severely damaged, and he silently lowered his proud head.