Chapter 384 Avalokitesvara Smith

American Express is essentially a financial services company. The company's most famous businesses are credit cards, charge cards, and travellers' checks.

It is one of the thirty stocks that make up the Dow Jones Industrial Average.

It is still the only company in the service industry among these 30 stocks.

It can be said to be an outlier, but it can also reflect from the side that its business is too successful.

Among the world's top 500 companies selected by Forbes magazine, American Express has never ranked lower than 100.

In "Business Weekly", it was listed as the 15th most valuable brand in the world, with an estimated brand value of approximately US$7.87 billion.

Its original CEO was Kenneth Chenault.

Kenneth Chenault actually just took office in early 2001, and his term was less than one year.

Maybe it's because he doesn't want to give up the power he just gained.

Kenneth Chenault has always been very resistant when faced with Abel's acquisition.

So much so that he was willing to be used as a gun and rushed to the front, and finally ended up being dismissed.

He also became the fastest CEO to step down on Wall Street last year.

The morning of January 2nd.

Wall Street.

For nearly 80 years, this street in New York, which is only over 500 meters long and 11 meters wide, has been a global financial center.

Before that, it was London that held this status.

But London's status in the financial world, with the abdication of the Great Yin Empire, had to give up its position as the financial boss to New York.

Just like the Great Yin Empire gave up its position as the world's boss to the American emperor.

However, the world's most famous financial street is now in a state of depression.

The British "Guardian" published a report one month after the September 11th incident, describing the situation on Wall Street:

[Signs with the word "for rent" can be seen everywhere on the street; even during the holidays, few people visit the store; rental activity has dropped by nearly 55% compared with a year ago, and dropped by 90% compared with August. 】

In fact, before September 11, there was a wave of evacuation from Wall Street, which probably occurred from 1995 to 2000.

In the past few years, Morgan Stanley and Morgan Chase, one of the four largest banks in the United States, have successively withdrawn their headquarters from Wall Street, but they have not left New York.

The second real wave of evacuation was after last year's "September 11" incident.

A large number of financial companies and banks evacuated. The horrific disaster caused the financial companies that had gathered near Wall Street to disperse, and some even withdrew directly from New York.

After all, there is already very practical Internet technology, and communication technology is sufficient to support the gradually improving capabilities of fully electronic transactions.

After September 11, what happened to those unfortunate companies in the Twin Towers also gave most financial capital companies a need for distributed offices to prevent risks.

Advances in technology coupled with this major crisis have made Wall Street less attractive to financial companies.

This situation leaves New York, the "financial capital," facing the embarrassing situation of losing tax revenue and losing its status.

The situation is so serious that the New York City government has begun planning to encourage financial companies to return to Lower Manhattan through tax breaks.

Taking the lead in bucking the trend, when everyone was afraid and fleeing Lower Manhattan and Wall Street, they instead moved their headquarters to a series of Smith's companies in Lower Manhattan.

They are all on the list of those eligible for tax exemption and tax reduction.

Who calls the building where these companies are located, that is, the Smith Tower, although it is not in the 500-meter-long Wall Street.

But it happens to be in lower Manhattan, in the core of downtown.

It just falls within the scope of tax cuts and subsidies.

Such an example would have been pushed forward even without Bloomberg.

What's more, Bloomberg has the final say in New York now.

Naturally, this kind of welfare policy belongs to the Smith family.

Even if these benefits are given to the Smith family, others can't say anything.

If I dare say it, let them move back to lower Manhattan too.

On this day, the 52nd floor of the Smith Tower.

In Abel's office.

Abel was sitting on the soft boss chair, with a faint smile on his face, looking at Otto Walburg, President of North America, UBS Group, sitting opposite him, who was here for a special visit today.

Among the major shareholders of American Express, the overseas institution with the largest shareholding is UBS Group.

Switzerland's largest joint banking group owns almost 3.96% of American Express.

It is the institution that holds the largest share of American Express besides State Street Bank and other five major institutions in the United States.

Previously, the shareholders of Express Company resisted Abel's arrival.

UBS Group was one of the first to fully support Kenneth Chenault.

It's a pity that there is no unity within their union at all.

In the end, Abel teamed up with Soros and disintegrated directly from the inside.

Let Abel officially join the board of directors of Express Company.

In a sense, it can be understood that UBS Group was one of the groups that originally planned to trick him.

It's a pity that they didn't succeed.

Not only was it unsuccessful, it actually fell into the hands of Abel Smith.

Facing such a guy, Abel had already raised the knife in his hand high and pointed it at the opponent's veins.

It is better to resolve enemies than to make them knot, and not to add insult to injury and so on.

It's all bullshit here in Abel.

Since you have chosen to be an enemy, you must be responsible for your own choices.

Abel will never be merciful.

Although this enemy with ill intentions cannot be killed, a lesson is inevitable.

"...Okay, Mr. Smith, you win, $35, and the 3.96% of American Express shares held by UBS Group is yours."

Otto Warburg felt bitter and unwilling in his heart, but the situation was stronger than others, and even if he didn't intend to bow his head, it would be impossible.

Because more than 50% of American Express Company's shares are owned by Abel Smith.

As the largest shareholder that has reached the safe holding line.

If Abel fails, the only way for the remaining shareholders of American Express to restrain him is to sue the law.

The problem is that even if all the remaining shareholders work together to sue Abel, they may not be able to win.

Who doesn't know that Manhattan District Attorney Robert Morgenthau is as close as he can get to having "Smith Associates" written on his face?

If you want to sue Abe Smith in Manhattan, anyone can.

But if you want to win...where do you think this is?

This is New York!

What's more, "working together" is impossible for these institutional shareholders.

If they could work together, Abel wouldn't have been able to get so many American Express shares before.

As the most targeted target, UBS Group was very well-informed and quickly sensed the crisis.

I know that Abel is serious this time, and even if the other shareholders of Express Company unite, they will most likely be unable to resist.

Even if he didn't want to see Abel Smith anymore and was worried about being humiliated, Otto Warburg had to come to the door in person.

Because in order to avoid losses, or not to be targeted, the only way UBS Group can do is to go to Abel Smith.

The price is $35, which is lower than Soros’s price.

Even if UBS Group sells it at this price, there will be losses (UBS Group entered the market early, and American Express was valuable at that time).

However, in the process of privatizing American Express, Abel targeted UBS Group and ended up beating the odds.

The headquarters of UBS Group is already very dissatisfied with Otto Warburg.

If we cannot get back as much of our capital as possible as soon as possible, make our books look better, and let UBS's stock price rise, what awaits Otto Warburg will be the same fate as Kenneth Chenault.

That means being kicked out.

"Sorry, Mr. Warburg. As far as I know, the stock price of American Express is only $32 on the stock market."

Abel smiled in response.

During his acquisition battle to acquire American Express, American Express's stock price once exceeded $45 per share.

But after his tender offer ended.

The market saw that he already had great power over American Express and knew that no one could compete with Abel for control of American Express.
To be continued...