America: My Time

Chapter 234 British Compromise

Chapter 234 The British Compromise
"Mr. Yuan, on behalf of Standard Chartered Bank, I would like to ask what price you are willing to pay to make you stop?"

"Stop? I don't think Pacific Investment needs to stop. When Standard Chartered chose to stand against Mr. John and scheme against him, they should have known this day would come. Now you want us to stop? How is that possible? This little price can't make up for the impact and losses caused. Standard Chartered should hurry up and prepare the US dollars we want to withdraw, so as not to damage its reputation, which would be even more disadvantageous for you!"

“Mr. Yuan, I admit that Standard Chartered was wrong back then, but Pacific Investment alone could not possibly stand up to the entire British-owned enterprise!”

"That's true. Pacific Investment's strength is indeed insufficient to do this. However, Pacific Investment is not acting alone. I believe you are already aware that Pacific Investment has the support of Japanese and American forces. With Mr. John's reputation in the Japanese banking industry, he has sufficient funds to launch an attack against you. Even if you want to stall for time, you cannot do so because you have no allies, while Mr. John has the support of Japanese banks."

“Mr. Yuan, since you have chosen to meet with me today, there must be room for negotiation between us. As long as Standard Chartered can do it, we will not refuse.”

“Alright, that’s exactly what I wanted to hear. Standard Chartered must know perfectly well what Pacific Investment was planning to do with all that money they’ve gathered before. We still have that idea now, but the price is no longer what it used to be. Standard Chartered needs to help us negotiate with them. If the acquisition negotiations are successful, we can exchange our US dollars for Hong Kong dollars to use for the acquisition. In that case, Standard Chartered’s crisis will be resolved!”

Will Japan and the United States back down as well?

"That's natural. Once we reach a preliminary agreement, both sides will naturally back down. There won't be any problem with that. The only question is whether Standard Chartered can meet our requirements. Of course, if Standard Chartered can't, I believe HSBC can."

When Yuan Tianfan mentioned HSBC, a cold smile appeared on his face. HSBC's situation is not much better than Standard Chartered's. Even if Standard Chartered wants to join forces with HSBC again, it will not be able to threaten Pacific Investment. Pacific Investment is currently in control and has an absolute advantage.

"Alright, Standard Chartered agrees to your proposal!" When you're under someone's roof, you have to bow your head. At this moment, Standard Chartered didn't have the courage to continue fighting Pacific Investment; they couldn't afford the serious consequences. Don't be fooled by Pacific Investment's current outrageous actions; this isn't the worst of it. If these guys were to completely sever ties with Standard Chartered, Standard Chartered's stock would plummet, because Pacific Investment holds a significant number of shares.

If, at this juncture, Pacific Investment not only were to abruptly withdraw its US dollars but also frantically sell off Standard Chartered shares, it would truly be a disaster. Standard Chartered could even be wiped out in one fell swoop, which is the scenario Standard Chartered fears most. Of course, HSBC also faces this same concern.

Standard Chartered chose to compromise, but Standard Chartered alone could not solve the problem. It was inseparable from HSBC. Although Standard Chartered could unite with those British conglomerates to gain their consent, there was not enough time and Standard Chartered was not confident of doing so. Therefore, it was necessary to cooperate with HSBC. Only by persuading HSBC could everything be resolved.

Standard Chartered soon approached HSBC and met with Sir Michael Sandberg, the HSBC tycoon. At this time, Sir Michael Sandberg was no longer the same as when he was in high spirits and blocking Pacific Investment. Now he was also in a mess, forced into a corner by Pacific Investment. This move to cut off his supply line made him feel the pressure.

“Ms. Shen, we have to compromise now. I don’t know the situation at HSBC, but Standard Chartered can’t afford any more shocks. Only by compromising can we get out of this predicament!”

"No, I don't think compromise can solve the problem. We can ask the Hong Kong government for help. This is not our fault, and we should not have to bear the consequences or this pressure. The Hong Kong government should stand up to protect our interests!"

"That's simply impossible. We don't have that much time. Pacific Investment is too well-prepared, and we also have to face attacks from Japan and the United States, which exacerbates our danger. I don't know how many shares of HSBC they control, but Standard Chartered can't afford the consequences of a stock sell-off. Let's settle, even if it's just for HSBC's own safety. The financial market is changing too much these days, and a series of defaults have already caused panic. If HSBC and Standard Chartered also suffer a run, I don't know what the situation would be like. I can't place all my hopes on the Hong Kong government."

"Alright, I agree to a settlement. What are their demands?" Faced with this dramatic shift in the financial market, even HSBC tycoon Sir Michael Sandberg had to compromise. The situation in Hong Kong was far from ideal, and most importantly, HSBC itself was in dire straits. The rate of dollar exchange was accelerating, and on the black market, the exchange rate between the dollar and the Hong Kong dollar was steadily rising. No one knew what tomorrow would bring. "Pacific Investment demands the completion of the previous acquisition. At the current price, Standard Chartered can't do that!"

"Taking advantage of our misfortune, this bastard actually dared to rob us while we were down. How dare he do this? Doesn't he fear that he will have no chance of moving an inch in Hong Kong in the future?" Shen Bi was extremely angry at this moment. He had actually been defeated by such a young upstart.

"Do we have any other choice? If HSBC has sufficient dollar reserves, I have nothing to say. If not, we have no choice but to compromise. It's inevitable. In the current situation, nobody knows what tomorrow will bring. They've only given me three days. If HSBC wants to extricate itself, it's best to talk to them and agree to their demands. The longer it drags on, the more disadvantageous it will be for us. They have the support of several Japanese banks behind them; it's difficult for us to compete with them financially." It was precisely because Standard Chartered understood its opponent's situation that it compromised, and had no choice but to compromise. After all, those Japanese guys have too much money!
“Let’s arrange a meeting with them. This time it’s not just Standard Chartered’s business, nor is it just HSBC’s business. It’s about our entire British consortium. Since they’re interested in the acquisition, let’s all sit down and talk. Let’s hear their demands!” At this moment, Sir Michael Sandberg wanted to bring together all the British consortia in Hong Kong and Pacific Investment for a negotiation. Even though the overall environment was very unfavorable to them, he didn’t want to give up more benefits or the initiative.

Seeing Sir Michael Sandberg's expression, Standard Chartered had no choice but to compromise. This was for the best; with everyone involved, the situation might improve, and it would be more conducive to the negotiations. However, they didn't realize that every further delay meant more benefit for both Japan and the US, and they would bear even greater pressure.

If the Hong Kong dollar continues to fall like this, the consequences will be unbearable for them. It will attract more short sellers and make the situation in Hong Kong even more uncontrollable.

Under the pressure of the prevailing environment, the British consortium had no choice but to compromise and come together to deal with the crisis that could erupt at any moment. They had all noticed the anomalies in their own stocks and knew who was behind it. However, under such circumstances, they had no ability to resist because the other party had chosen the right time and prepared too much money, leaving them no chance to struggle.

Inside the Mandarin Oriental Hotel, Yuan Tianfan looked at the many bigwigs of the British-owned conglomerates in Hong Kong, a hint of confidence flashing in his eyes. He hadn't expected the situation in Hong Kong to become so crazy, forcing these British-owned conglomerates to bow down.

“Mr. Yuan, we are all quite familiar with each other. Please state your requirements directly. We are all here, and we can discuss anything. If your requirements do not exceed our expectations, we can discuss everything! I believe you do not want to see Hong Kong's financial collapse, as that would not be good for Pacific Investment!”

"Our demands are not high; we just want to complete the previous acquisition. However, due to the previous unpleasantness, the boss has made a new request to everyone: 'Cathay Pacific.' I believe HSBC will not let us down!"

"No, that's impossible! Our Swire Group will not accept this!" Before HSBC could even speak, the Swire Group immediately objected, unwilling to accept the terms, as Cathay Pacific was an important asset to them.

"I believe you all understand the current situation. I am not making a request, but rather setting conditions. Whether you agree or not is up to you. Of course, if Swire Group feels it is possible to continue, I have no objection, and I believe the boss will not have any objection either!"

Although Cathay Pacific is now an asset of Swire Pacific, HSBC holds 30% of its shares. If HSBC were to sell these shares, it would not be good for the Swire Group.

“HSBC accepts that we can transfer our 30% stake to you, but you must also agree to our demands: stop attacking us in the stock market and guarantee the exchange of US dollars for Hong Kong dollars between HSBC and Standard Chartered.”

"Yes, we also have requirements. We don't want Hong Kong dollars; we want to settle in US dollars!" At this moment, the British guys realized what was going on and started refusing to accept Hong Kong dollar transactions, opting instead for US dollar transactions. After all, Pacific Investment now held a large amount of US dollars, which naturally appealed to them.

"Yes, if you all agree, Pacific Investment will grant your request. However, a problem has arisen: we cannot obtain the 'Cathay Pacific' we desire, so the deal will have to wait a while longer!" At this moment, pressure instantly pressed down on Swire Group!
(End of this chapter)