America's No. 1 financial conglomerate

Chapter 535 Who Benefits?

Instead of calling Michael Armstrong, the CEO of Telephone & Telegraph Corporation, Ernst got out of bed and went straight to the bathroom.

Gisele Bündchen also realized that something big had happened, knowing that today's intake would not meet the standard again, but she still got up and followed Ernst in to help him wash up.

The distance from the mansion in Central Park to the headquarters of the Telephone and Telegraph Corporation was not far. An hour after the news broadcast, Ernst had already arrived at the gate of the Telephone and Telegraph Corporation headquarters.

"Boss, there's a large number of reporters gathered at the entrance." Muller reported to Ernst while observing the situation ahead.

His tone carried a hint of caution, after all, such a large-scale media gathering represented an increase in the risk of infection.

Ernst looked in the direction Muller indicated and saw that the entrance to the Telephone & Telegraph Corporation building was already surrounded by a huge crowd.

Dozens of reporters, with their equipment set up, gathered in small groups, talking quietly, their eyes fixed on the building's entrance. They were clearly waiting for the Telephone & Telegraph Corporation executives to appear so they could swarm in and hopefully uncover more insider news.

"Shall we go to the underground parking entrance?" Muller asked again.

"Go through the back door." Ernst said decisively without the slightest hesitation. "By now, the entrance to the underground parking lot has most likely been blocked by reporters. They won't let that passage pass by."

As for the back door, there are usually no reporters there.

They hadn't done anything utterly heinous; those high-ranking executives from the telephone and telegraph companies wouldn't be sneaking away through the back door like thieves. Even if they didn't want to be interviewed by the media and wanted to leave normally by car, the reporters didn't dare to obstruct them too aggressively.

Just as Ernst had expected, there wasn't a single reporter waiting at the back door.

Ernst got out of the car and walked slowly along the private corridor next to the back door.

The walls on both sides of the corridor are covered with photos documenting the development of the Telephone and Telegraph Corporation, recording the transformation of this century-old company from the era of wired telegraph to today's telecommunications giant.

Upon entering the lobby on the first floor of the building, the receptionist's eyes flashed with surprise the moment Ernst appeared.

They dared not delay. One staff member immediately stepped forward and respectfully led Ernst to the VIP reception area, while another quickly picked up the phone to report his visit to his immediate supervisor.

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Just like last time, when the elevator doors opened again, Armstrong's secretary was already waiting for him at the elevator entrance.

Almost as soon as the elevator doors opened, the other person gave a professional smile and said respectfully, "Mr. Garfield, Mr. Armstrong is already waiting in his office. Please follow me."

As soon as he entered, Armstrong stood up to greet him warmly. "Ernst, I really didn't expect you to come. You didn't even give me a heads-up so I could have sent someone downstairs to meet you."

Ernst smiled, but no matter how you looked at it, you could sense that there were other emotions mixed in with the smile, and a sense of distance.

"I wouldn't dare disturb your work."

Armstrong paused almost imperceptibly, then turned to his secretary and instructed, "Make two cups of coffee, using my collection of Colombian beans." The secretary respectfully acknowledged and turned to leave the office.

Armstrong, still beaming with enthusiasm, gestured for them to come over and sit down in the meeting area to talk.

The reception area was largely unchanged from the last time I visited, still featuring the same dark brown leather sofa paired with a matching coffee table.

However, the crystal vase on the coffee table now contained white roses, emitting a faint fragrance.

It seems the other person is a flower lover. I remember the last time he came, there was a purple flower, but he couldn't name it.

After Ernst sat down on the sofa, he said without any formalities, "I think you know why I came here. You should also understand the serious consequences this matter will bring us."

His gaze was fixed on Armstrong, trying to catch a clue from the other's expression.

"Those futures firms on Wall Street will not let this go. The emergence of our dedicated line will bankrupt half of the related companies."

"And those telecom giants, especially the local network providers in New York, this will undoubtedly disrupt their plans in the telecom sector and affect their vested interests. They can't just stand by and watch us take food from their bowls."

After a brief pause, Ernst continued, "I can assure you that within two days, they will unite and take action. They will file a class-action lawsuit, pressuring numerous regulatory bodies, including the Commodity Futures Trading Commission, the Federal Trade Commission, the Banking and Financial Supervision Bureau, and the Federal Communications Commission, to block the progress of this dedicated line."

Faced with Ernst's seriousness, Armstrong revealed a hint of disdain. "What's there to be afraid of? Our cooperation is completely legal and compliant. All procedures have strictly followed relevant laws and regulations. Their actions will ultimately be in vain."

Ernst sneered inwardly. How could he not understand this? The reason he chose to cooperate with the Telephone and Telegraph Corporation was because of their extensive network of contacts across various regulatory departments.

As long as the mainland telecommunications operations are completely legal and compliant, given the influence of the Telephone and Telegraph Corporation, no one can truly stop the advancement of this dedicated line.

"I'm talking about time." Ernst's tone became more serious; this was his core concern.

What good is it if the dedicated line is laid and connected? He can't afford to be dragged out for a year and a half, or even longer, by these lawsuits and regulatory investigations.

"You can rest assured, this line will definitely be operational by the end of this year," Armstrong earnestly assured Ernst.

Ernst frowned slightly. He knew it was pointless to say anything now; he couldn't possibly give the other party orders.

So they changed the subject, asking, "What's the current progress on the line laying?"

"We're about to enter Ohio."

Upon hearing this news, Ernst breathed a slight sigh of relief.

For this route to be successfully laid, it needs to pass through the states of Pennsylvania, Ohio, and Indiana.

In order to save time, the project was carried out simultaneously from the starting point to the end point.

In other words, once they enter Ohio, the two sides will be close to meeting up. It could be completed by the end of this month if things go smoothly, and by early December if things go slowly.

Leaving aside other aspects for now, at least the construction of this line is not a concern.

This is a problem he can't control, so there's no need to worry about that; other problems can always be solved.

But then his brows furrowed even more deeply. If that was the case, what was the purpose of the Telephone and Telegraph Corporation in leaking the information?

Why was it WorldCom that broke the news again?

To cover one's tracks?

This is more like burying one's head in the sand.

With careful analysis, it is not difficult to deduce that this message must have been leaked from the Telephone and Telegraph Corporation.

Behind all business activities lies nothing more than profit; the key lies in who can profit from it and how much profit they can make.

The Telephone and Telegraph Corporation (TT) clearly benefited more from this than Lehman Brothers.

Within just one hour of the news breaking, Telephone and Telegraph Corporation's stock price hit its daily limit.

The internet industry is currently experiencing rapid growth, with market activity remaining high, leading to a surge in the stock prices of all internet-related network providers. Telephone & Telegraph Group, which just acquired local access service provider TC for a large sum in January, has now been revealed to hold a 49% stake in China Telecom, clearly indicating its intention to fully enter the internet services field.

With such a well-established industry giant entering the internet services field, almost no one in the market is pessimistic.

Even a weakened camel is bigger than a horse; despite its decline, the Telephone and Telegraph Corporation still possesses considerable accumulated technology, resources, and brand influence.

Given such market expectations, Telephone & Telegraph Corporation's stock price will certainly continue to rise in the short term, and Ernst wouldn't be surprised if it doubles.

Lehman Brothers' profits from this deal mainly came from those thirty leased line seats.

As a top investment bank, financial business is its core essence. Whether or not the news of this dedicated line cooperation is exposed, it will not have a significant impact on Lehman Brothers' core business.

The Telephone and Telegraph Corporation (TTC) is the biggest beneficiary of this exposure.

"I don't understand why this matter was leaked to the media. China Telecom will eventually come to the forefront, and the soaring market value of Telephone and Telegraph Corporation is inevitable."

Unable to figure it out, Ernst simply asked.

Even if Armstrong gives a false answer, it helps him eliminate a wrong option, right?

Armstrong shrugged and spread his hands. "To be honest, it really was just an accident."

"You should know that the instigator of this was Shitong, not us." That's right, it was Shitong.

Why did Telephone & Telegraph Corporation (TT) hire WorldCom to leak information?

"Moreover, there are also reservations among the board members, including Lucent."

Is there some lingering resentment?

To him?

This left him even more confused.