Chapter 286: Meeting and Cutting 1 and a Half

After Hardy and David reached an agreement, the two began their planning. David initiated contact with HSBC.

Meanwhile, Hardy worked behind the scenes to influence public opinion.

A day later, David Rockefeller met with HSBC representatives in the hotel lounge. Daville Sassoon, a member of the prominent Sassoon family, led the HSBC team.

The Sassoon family, with its vast assets accumulated over centuries, is often compared to the Rothschilds and has historical ties with them through marriage.

After exchanging greetings, David Rockefeller asked, "Sassoon, I see from the investment directory that you plan to sell 17% of HSBC's shares. Can you explain why HSBC is looking to divest these shares?"

Davier Sassoon was prepared for this inquiry, knowing that any potential investor would ask about the reasons for the sale. Admitting any issues with HSBC could lead to a lower offer, a common tactic in negotiations.

Sassoon smiled. "HSBC's financial health is strong. We hold the right to issue currency in Hong Kong, which is quite valuable."

David Rockefeller, familiar with the significance of issuing rights, responded, "Yes, currency issuance rights are valuable. HSBC's goal in selling shares is to find strong partners and prepare for broader market expansion, including ventures into the U.S. and Europe."

Sassoon emphasized the potential benefits of the partnership, suggesting that an investment would be mutually advantageous and promising significant returns.

David Rockefeller remained noncommittal. "What is HSBC's current market value, and at what price are these shares being sold?"

Sassoon replied, "We value HSBC at $330 million. The 17% share sale is priced at $56.1 million."

David shook his head. "I disagree with that valuation. HSBC's primary market has been in China, which is currently unstable. The ongoing conflict has severely affected HSBC's operations there, with many branches closing. The risk of losing Hong Kong further complicates the investment."

Sassoon's expression tightened. It was clear that David understood the risks and was aware of the situation in the East.

"What does Mr. Rockefeller suggest?" Sassoon asked.

David replied, "For high-risk investments, caution is essential. Based on our assessment, HSBC's value might be closer to $130 million. This reflects the high-risk nature of investing in such a turbulent region."

Sassoon was momentarily relieved that there was still interest but was concerned about the low valuation. "HSBC has over three million customers and significant capital, with annual profits reaching $12 million. This profitability exceeds that of many major banks."

David countered, "Profitability is one factor, but we must also consider risk and future prospects. This deal is essentially a high-stakes gamble."

The negotiation ended on a tentative note, with neither side fully satisfied but not outright rejecting the offer. The process of negotiation was ongoing.

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Meanwhile, Hardy summoned the head of the Global Times newspaper in London and provided detailed instructions. He asked the newspaper to send personnel to Hong Kong to communicate the necessary information.

Hardy also coordinated with the U.S. Global Headquarters to align their efforts with those in Hong Kong and the UK. He enlisted Henry to bring intelligence personnel to the UK and requested the Global Times London office to assist in gathering comprehensive information about HSBC.

A few days later, after extensive collaboration, Hardy and David Rockefeller reviewed the findings on HSBC.

HSBC, founded in 1865, had numerous shareholders, including the British Steamship Company, Sassoon International, and others. Over time, the shareholder base had become more dispersed. The Sassoon family held 11.3% of the shares, while other companies and individuals also held stakes.

During World War II, HSBC faced severe challenges. Japanese occupation led to the confiscation of its assets, and the bank only began to recover after Japan's surrender. The war's impact, combined with ongoing conflict, had left HSBC struggling.

Hardy and David Rockefeller's investigation revealed that HSBC's reported profits were inflated due to strategic financial reporting. The real picture showed that the bank was still in a precarious position.

David marveled at the detailed information Hardy had gathered so quickly. The efficiency of Hardy's intelligence operations highlighted his effectiveness and foresight.

David asked Hardy about his interest in the high-risk investment.

Hardy responded, "The North will win. This is certain. Although current battles may seem evenly matched, the real momentum is with the North. As for Hong Kong, it's a gamble. There's a chance it could be captured, but it might also remain in limbo for a while. The risk is significant, but so are the potential rewards."

David, typically cautious in his investments, was intrigued by Hardy's bold approach. Despite the risks, Hardy's track record and investment philosophy convinced David to proceed.

The decision was made: David and Hardy would pursue the HSBC investment together, combining their formidable resources to navigate this high-stakes gamble.