America's No. 1 financial conglomerate

Chapter 630 A Win-Win Acquisition

Buffett wasn't just there to seek cooperation; he was also there to act as a lobbyist.

The two had a very pleasant conversation and talked about many things.

When he hung up the phone, he realized that Wenger had already left the living room.

"Let's eat first, we've been waiting for you." Annie's voice came from the direction of the kitchen, gentle with a hint of barely perceptible concern.

Despite having spent a day together, Ernst was still somewhat dazed by her proactive attitude.

Such a scene would have been absolutely impossible in the past.

She wouldn't even wait for me to sit down at the table, let alone call me to eat.

But now, it seems she's deliberately keeping an eye on her movements.

Ernst glanced at his watch; the hour hand pointed to 12:30. Before he knew it, the morning had passed.

As I walked toward the kitchen, I saw Wenger already sitting at the table, with some food on his plate, clearly having started eating.

"Aren't you going to wait for me?" Ernst joked with a smile, his tone casual, not really caring.

Wenger swallowed the food in his mouth, looked up at Ernst, and said with a relaxed expression, "The old man needs to eat on time."

"Alright." Ernst smiled, pulled out a chair next to him, and sat down.

"You two had a pleasant chat?" Wenger asked casually as he cut his steak.

"It's harvest season, of course it's a joyful time." Ernst picked up his knife and fork, his smile barely contained.

"I just texted Ivan Setonberg; I'm going to China Telecom this afternoon. Want to come along?"

Upon hearing this, Wenger stopped what he was doing, a glint of light in his eyes, and then he smiled. "Looks like the mainland telecommunications license has been secured?"

Ernst nodded slowly. "If nothing unexpected happens, we will receive official notification from the Telecommunications Commission this afternoon."

The approval of the telecommunications license not only means that mainland telecommunications companies have finally obtained legal operating qualifications for their dedicated line business, but also signifies that this tumultuous dispute will finally be calming down for a while.

"So, are you going to use this butcher's knife to strike Wall Street first?" Wenger's tone was slightly teasing, but he couldn't hide his anticipation.

Ernst shook his head, a cold glint in his eyes as he picked up his water glass. "It's just collecting some interest first."

In his view, the expensive seats offered by mainland telecom companies were not a real treat.

"By the way, China Telecom is about to acquire the broadband business unit of Telephone & Telegraph Group. You need to be prepared." Ernst calmly dropped this bombshell.

"Acquiring the broadband business unit of Telephone and Telegraph Corporation?" Wenger was so surprised that he put down his knife and fork, completely unexpected to hear such news.

As one of the giants in the American telecommunications industry, Telephone & Telegraph Corporation's broadband business is still among the top ten network providers in the United States, even though its development has not met expectations, and it has a considerable user base and infrastructure.

If China Telecom can successfully complete the acquisition of this division, its strength in the broadband business will achieve a qualitative leap, especially in the East Coast market. With the existing business foundation of the Telephone and Telegraph Group, China Telecom will instantly become one of the top three in the industry and an undeniable force in the East Coast telecommunications industry.

Such an acquisition could undoubtedly completely change the competitive landscape of the American broadband industry.

"Why?" Wenger was puzzled. Why was Telephone & Telegraph Corporation being dragged into this and ripped off?

Most importantly, have Wall Street and the telecommunications industry accepted him as a new player?

That's obviously impossible.

"Wall Street is shrewd; they're using a roundabout approach to achieve their goals," Ernst scoffed, his tone laced with disdain, having seen through Wall Street's cunning scheme.

He put down his knife and fork, picked up the water glass next to him again, took a sip, and explained, "Mainland Telecom has an agreement with Telephone and Telegraph Corporation. Two years later, if Telephone and Telegraph Corporation is interested, it can acquire Mainland Telecom in its entirety and take over the remaining 51% of the shares I hold."

"But this agreement has a prerequisite: the Telephone and Telegraph Corporation must do everything in its power to ensure the opening of this dedicated line and help China Telecom obtain a telecommunications license."

"As you can see now, the mainland telecommunications license is about to be approved, and the opening of dedicated lines is a foregone conclusion, but all of this has almost nothing to do with the Telephone and Telegraph Corporation."

Upon hearing this, Wenger instantly realized: "They're afraid you'll use this as an excuse to back out."

According to the agreement, Telephone and Telegraph Group failed to fulfill its obligations, and Ernst had every reason to overturn the previous acquisition agreement or to propose more stringent conditions in subsequent negotiations.

Wall Street capital is clearly aware of this, which is why it is eager to find remedies.

"That's right," Ernst nodded. "They want to use the broadband business of the Telephone & Telegraph Group to shut me up and renegotiate a future acquisition agreement."

"Wall Street is well aware of the importance of this dedicated line to them, so for them, it is essential to keep this vital dedicated line in their own hands."

Ernst then spoke with an air of dominance, letting out a cold snort, "But here, they shouldn't even think about it."

"So they thought of the existing agreement between China Telecom and Telephone & Telegraph Corporation, and planned to take a roundabout approach, using Telephone & Telegraph Corporation to privatize China Telecom."

Ernst paused, then changed the subject, "Moreover, this is only one of their objectives."

"One of the purposes?" Even Annie, who had been listening the whole time, couldn't help but ask curiously.

Ernst explained, "Broadband business is currently a real money-loser. With increasing competition in the industry, the cost of laying broadband infrastructure remains high. If China Telecom takes over this department, it's like helping the Telephone and Telegraph Group to continue laying broadband lines and improving infrastructure with its own funds, while the Telephone and Telegraph Group can walk away and get rid of this heavy burden."

Ernst's gaze swept over Wenger and Anne. "Getting rid of the broadband division is something Wall Street has always wanted to do. For a long time, the continuous losses in the broadband business have severely dragged down Telephone & Telegraph Group's financial performance and lowered the company's market value."

"But they didn't dare to do this before because everyone knows that broadband services are the future trend."

"With the popularization and rise of the Internet, the potential value of broadband services is immeasurable. Giving up now is tantamount to giving up future market share."

Ernst's tone carried a hint of sarcasm. "But things are different now. They've found Continental Telecom to take over. Selling the broadband business will not only rid them of the burden of losses, but also make the Telephone and Telegraph Group's financial statements look better, thereby boosting the company's market value and allowing investors to profit."

"Once they've made enough profit, they can turn around and announce the acquisition of China Telecom, which has an even larger broadband business."

"Then, they can use the concept of integrating industry resources and seizing future markets to inflate the stock price again." Ernst sneered. "It's just a different method. In the end, they will still acquire China Telecom in its entirety, but Wall Street can harvest the profits twice and make a fortune."

"And you won't lose out either." Annie's gentle voice rang out from the side, breaking the coldness in Ernst's words. "You can use this opportunity to get Continental Telecom listed on the stock exchange."

"With the scale and market potential gained from acquiring the broadband business of Telephone and Telegraph Corporation, China Telecom will inevitably generate an extremely high market capitalization. Once the stock price reaches its peak, Telephone and Telegraph Corporation can take over, allowing you to cash out and exit with huge profits."

Ernst and Wenger both looked at Anne with a hint of surprise in their eyes.

Ernst never expected that the other party would also understand the underlying capital logic, resulting in a win-win situation for both sides and the harvesting of profits.

Wenger's eyes held a hint of satisfaction, just like a father-in-law looking at his daughter-in-law.

"Ahem." Wenger coughed lightly, breaking the brief silence. "By the way, I booked a table at a Chinese restaurant in Manhattan's Chinatown."

"That restaurant is famous for its Cantonese dim sum; you can try it tonight."

Ernst knew that Wenger had definitely not made an appointment in advance; he was just testing Ernst's intentions.

Only after he nods in agreement will I actually call to make a reservation.

Even so, Ernst felt a surge of emotion.

That was about half a year ago. He asked Liu Huiying if she knew how to make Cantonese pastries, and she tried making them once.

Well, the taste is good, but when a northern chef makes Cantonese pastries, it always feels like something's missing, as if it lacks an indescribable charm.

The old man had kind intentions, wanting to give him and Annie a chance to be alone, and he couldn't bear to let him down.

He turned to look at Annie, intending to ask for her opinion, but to his surprise, Annie turned her head away, a faint blush rising on her cheeks.

Is she shy?

Ernst found it somewhat interesting, and looking at Anne's slightly awkward profile, his smile deepened.

He turned to Wenger and said in a light tone, "Okay, thanks then."