Persian Empire 1845

Chapter 552 Suez Canal Company

Paris was now engulfed in riots, and the series of defeats had cost Napoleon III his support. This also plunged Paris's economy into chaos; workers went on strike, factories shut down, and normal economic activity was impossible. Even the police only fueled the workers' anger, which would eventually consume everything.

At the Suez Canal Company headquarters in Paris, Ferdinand de Lesseb sat in his office chair, overwhelmed with worry. His company was now facing a cash shortage, and with only a year to go before the Suez Canal was built, who would be willing to lend money in the current situation?

At this point, the canal was nearing completion, requiring £75 to complete. However, with everything in disarray, the company was facing a cash flow crisis, and its stock price had plummeted, with many investors already selling their canal company shares. What would happen next? Who knew?

“Mr. Resab, Mr. Gahraman wants to see you to discuss investment matters.”

"Oh, please come in quickly!"

Ghahraman is a familiar face in European economic circles, after all, he is the only person of Eastern descent who has managed to invest and make a profit in the City of London.

He is said to have a very powerful background, but Ressab is not interested in that; what he is interested in is the other party's investment.

"Mr. Gahraman, welcome here."

“Mr. Lessab, your bold investment in the canal is truly beyond everyone’s vision. I’m here today to discuss the investment.”

Upon hearing that it was about investment, Ressab immediately invited Gahraman to take a seat. Who would turn down money?
"I wonder how much Mr. Gahraman plans to invest?"

Gahraman shook his head. "I'd like to ask, are you selling your shares?"

Lesseb's smile froze. Good heavens, he'd thought you were offering a helping hand in his time of need, but it turned out you were taking advantage of his misfortune. Suez Canal stocks have already fallen to 260 francs and are expected to drop further.

"I'm sorry, Mr. Gahraman, the company's stock is not for sale at the moment. However, issuing new shares would be acceptable."

"Oh, that's true, but as you know, the current situation makes it unlikely that issuing new shares will be successful."

Furthermore, I've heard that your company has had a very unpleasant dispute with others over project payments, and the project is now close to being halted..."

That hits the nail on the head; it's truly embarrassing. It was so close, but the war has forced a postponement.

"Even so, we still have the support of the Imperial Government."

"As far as I know, your government is already in dire straits. His Majesty the Emperor's successive defeats on the front lines have plunged the entire country into turmoil. Stocks of various companies have plummeted."

Due to the war, France and other countries are selling off large amounts of stocks and government bonds. This includes Suez Canal Company shares, but recently a major power has been acquiring them, which Lesseb suspects is the British. They need control of the canal to protect India.

"Even so, selling company shares requires the support of more than half of the shareholders, but as you know, under these circumstances, it's really..."

"There's no need to worry about that, because more than half of the shareholders have already agreed."

As he spoke, Gahraman produced a stack of documents. “These are the transfer documents of the shareholders of the Suez Canal Company; they have transferred the shares to me.”

These words shocked Resab. He quickly picked them up to look, and sure enough, they were share transfer agreements, and there was a whole stack of them.

"A total of 74321 shares, all acquired from the French Stock Exchange."

Ghahraman then produced another agreement, "Furthermore, Egypt will sell its shares to our country." "Huh?!"

After continuous negotiations with Egypt, Ismail finally agreed to sell his shares in the Suez Canal Company to Iran. However, they demanded that if Egypt were to change course for other reasons in the future, Iran would need to grant the Ali family a suitable noble status.

The Shah readily agreed, but on the condition that the share price be lowered. Ultimately, Iran purchased Egypt's Suez Canal Company shares for £380 million. Earlier this year, Iran also acquired 5000 shares from Spain; including the current acquisition, Iran's stake has reached 60%, or two-thirds.

"Impossible. If Egypt were selling its shares, they couldn't possibly not know."

"That's normal, because this was a deal that was only finalized a week ago. For some reason, it's only being sent over now."

Gahraman looked at Reseb's face; it seemed he still hadn't grasped the situation. "Of course, the stock is still falling. Are you sure you want to continue?"

Ressab still stubbornly insisted, "Our country has the most experience in canals in the world. Without our country, this project would probably be a mess."

Gahraman shook his head. Why wouldn't he listen to advice?

“In the current situation, you have no way out.” A document was pushed towards you. “As long as you agree to transfer the remaining shares, I guarantee a reasonable price.”

The terms stated that Iran would acquire the remaining 13 French shares at 420 francs per share. This was a third higher than the current price, but from that point on, France would lose its connection to the Suez Canal.

"Is there really no room for maneuver?" Resab asked, unwilling to give up.

Seeing the other party's unwillingness, Gahraman laughed, and laughed heartily.

"If victory can be achieved on the front lines, it is possible. However, you will have to face attacks from other shareholders."

Ghahraman gestured, and his secretary withdrew. Soon after, news broke that the Suez Canal project was doomed to fail; with war looming, such bad news was almost insignificant. But by then, shareholders were also fearful, and a massive sell-off began. In just two hours, the stock price plummeted to 250 francs. Some even blocked the company's entrance, demanding an explanation from Lesseb.

"You... I didn't expect you to have incorporated those bankers' tricks into your approach."

"People need to grow up. Just because your country doesn't have this doesn't mean other countries don't."

Leisab looked at the other person and suddenly laughed. The thought of handing over his grand undertaking, which he had been planning for over a decade, still made him feel very sad.

"It seems I have no other choice."

Lesseb eventually signed the contract, transferring the 60,000 shares still held by the company and his own 4000 shares. He also resigned from all positions; the Suez Canal Company had changed hands.

"I hope you can complete this task. As far as I know, if things go wrong, other countries will swarm in."

In response to the advice, Gahraman told Resab, "Thank you for your reminder. I will invite you to visit once the line is open."

Resab snorted and left. It was unbelievable that this company, which had been established for thirteen years, had been acquired by Iran.

(End of this chapter)