Chapter 1006: 343. Shocking acquisition news

Although the merger of the four major banks seems unrelated to him, Paul Warburg felt that there was something unusual about it.

Thus, Paul Warburg immediately arranged to meet with Jack Morgan, hoping to indirectly probe into the matter.

The Warburg family and the Morgan family have some connections; when the Federal Reserve was being established, it was Paul Warburg who first contacted the Morgan family!

However, to Paul Warburg’s surprise, Jack Morgan rejected his meeting request.

This only intensified the foreboding feeling in Paul Warburg’s heart.

After a day of contemplation, Paul Warburg began to frequently contact various connections, including Max Warburg in Europe, the Rothschild Family, and many Jewish merchants in the United States.

But at this moment, Four-Sided Investment suddenly published an incredible and shocking news through major newspapers such as the “Wall Street Journal,” “Atlantic City Post,” and “The Washington Post.”

Four-Sided Investment appointed Morgan as their financial advisor to acquire Warburg Company’s shares at $3 per share!

Simultaneously, Morgan set up acquisition points in all major US cities, allowing anyone holding Warburg Company shares to trade at these points and obtain sufficient funds immediately!

Everyone knew that Warburg Company was the parent company of the Kuhn, Loeb & Co. consortium, and that Warburg Company had issued 230 million shares in total. According to the current market value of Warburg Company, each share was worth $2.2.

What surprised everyone was not the market value of Warburg Company, but the acquisition of Warburg Company by Four-Sided Investment.

With Kuhn, Loeb & Co. consortium being one of the top nine consortia in the US, such an acquisition was bound to affect various forces, yet there had been no prior news at all?

After seeing this news, Paul Warburg’s face changed drastically.

With almost an instantaneous reaction, Paul Warburg figured out everything: Donnie had never sincerely cooperated with him. While he was plotting against Donnie’s New Jersey Consortium, the other party was actually plotting against his Kuhn, Loeb & Co. consortium!

“Paul, I’m going to Atlantic City to see Donnie Block right now. I must get a direct answer from him!”

Felix Warburg called, shouting angrily.

Paul Warburg replied calmly, “What’s the use of going to see Donnie now? The most important thing right now is to find our connections and stop this transaction!”

Although the Warburg family is currently the biggest shareholder of Warburg Company, and despite Paul Warburg’s previous efforts to gather funds, he was very clear.

Under the current circumstances of being unprepared against a prepared opponent, the cash amount the other party prepared must be surpassing his own.

So now they could only try their best to stop this transaction.

In Paul Warburg’s view, the political connections behind their Warburg family are the most advantageous weapon to stop this transaction; only by first preventing the transaction could they have the leverage to negotiate with Donnie and others!

“Felix, contact the connections in Philadelphia immediately. Let them propose a monopoly argument to stop the transaction. Tomorrow I’ll head to Washington to discuss the matter with those in Congress!”

Without any wasted words, Paul Warburg hung up the phone. He then dialed the office of the chairman of NYSE.

Over the phone, Paul Warburg mentioned the hope to ensure the trading situation of Warburg Company’s stock and not to halt Warburg Company’s stock trading due to this acquisition!

Paul Warburg had two thoughts for such a decision. First, only this way could they acquire Warburg Company’s shares in the market. Second, Paul Warburg could manipulate the stock price of Warburg Company through some means!

The response from the NYSE chairman left Paul Warburg feeling as if he had fallen into an icy abyss!

The other party did not agree to Paul Warburg’s request, clearly indicating that he could not withstand the combined pressure from the Morgan, Mellon, Rockefeller, and Block families!

Paul Warburg did not argue further with the other party. After hanging up, he called the shareholders of Warburg Company immediately.

He informed them about the Warburg Company’s shareholders meeting this afternoon, asking those not in New York to send representatives!

The announcement from Four-Sided Investment had a notable effect. Before the NYSE announced the suspension of Warburg Company’s stock trading, the stock price of Warburg Company had risen to $2.5 per share!

“It’s been a whole morning, why hasn’t Warburg Company reacted in any way?”

At lunchtime, in various restaurants near Wall Street where stock brokers congregated, everyone was discussing the matter.

“I guess they’re still figuring it out!”

“Yeah, the ones they’re dealing with are the Morgan, Mellon, Rockefeller, and Block consortia–if it were anyone else, they would have probably surrendered by now!”

“But this is so strange. For such a big event, there was no news beforehand?”

“I can understand that. They’re not acquiring an ordinary company, but Warburg Company, the parent company of Kuhn, Loeb & Co. consortium. Plus, with the influence of the Warburg brothers in the US, if any bit of news had leaked, they might not have achieved the current effect?”