Chapter 200: Alliance of Interests

"Why the sudden increase in investment?" Hardy inquired.

He already had some suspicions.

Meyer explained, "Initially, our partners were Pepsi, Crocker Agricultural Products, Mersey Pharmaceuticals, and you and I, contributing 20 million yuan."

"Later, when you mentioned adding 50 million, I informed my partners. They decided to bring in new investors—Bank of America and Lockheed."

"When they learned about your new casino project with a 100 million yuan investment, they deliberated and agreed that a larger investment would be advantageous. So, they decided on a final amount of 100 million yuan."

"Bank of America has assured us they will safeguard the remaining funds after other investors' shares are removed."

Hardy thought to himself that Meyer might struggle to manage everything in the end.

Originally, Hardy had promised Meyer the opportunity to invest in Las Vegas casinos. Meyer's idea was for MGM to dominate the stock and control the casino. However, with the involvement of major capital, MGM had become marginalized.

In the face of Bank of America's colossal presence, MGM was insignificant.

Bank of America saw the Las Vegas casino as a lucrative opportunity and wanted to capitalize on it.

"Is there a plan for the distribution of shares?" Hardy asked.

"Meyer replied, "Mr. Amadi Giannini, the chairman of Bank of America, wishes to meet you before discussing the equity distribution."

Hardy realized that the interest was not just in the Las Vegas gambling industry but also in himself.

"Not a problem, Mr. Meyer. Please arrange a meeting with Mr. Giannini," Hardy said.

Such encounters were inevitable for someone experiencing rapid growth. Being in California, where his industry thrived, Hardy was naturally a target for local consortia. It was only a matter of time before such interactions occurred.

This development came sooner than expected, likely because of his swift progress and the attractive aspects of his ventures.

After hanging up, Hardy contacted Henry. "Henry, gather detailed information about the California consortium. The more thorough, the better."

"Got it, boss," Henry responded.

Meyer acted quickly. The next day, he called Hardy with news that Mr. Giannini wished to meet as soon as possible. The meeting would be held at Giannini's San Francisco manor. Hardy could visit at his convenience.

"I'll be there tomorrow. I'll officially meet Mr. Giannini at three in the afternoon," Hardy confirmed.

"Understood. I'll inform Mr. Giannini," Meyer replied.

The following day, Hardy boarded his private jet, a B29 bomber converted for personal use. The jet, now without bombing equipment, was fitted with 12 business seats and a separate room with a large bed.

Although the bombing equipment had been removed, Hardy retained the machine guns: twelve 12.7mm M2 machine guns on various sides of the fuselage and a 20mm M2 machine gun on the tail turret.

Only Henry and Andy accompanied Hardy. The San Francisco HD Security Company would handle safety and security upon arrival.

During the flight, Hardy reviewed the information on the California consortium. It reminded him of the ancient principle: "Know yourself and know your enemy, and you will never be defeated in a hundred battles."

The California Consortium, centered around Bank of America, included Safe Pacific Corporation, Crocker Agricultural Group, San Francisco Group, Wells Fargo, Lockheed, Lipton Industries, Northrop Grumman, Philco, Schervania Electronic Equipment, San Francisco Electric Company, PRC Real Estate Development, California Life Insurance Company, California Transportation Company, California Petroleum Company, Los Angeles First Bank, Martin Marietta, Kaiser Motor Company, Kaiser Steel, Kaiser Aluminum, and Chemical Company.

Through cross-shareholding and joint agreements, the consortium's total assets amounted to approximately $8.5 billion.

Unlike pre-WWII family consortia like Rockefeller and Morgan, which were family-centered, the California Consortium was a local alliance. It had benefited from WWII's rapid development and was formed through a more fluid cross-shareholding approach. This made it faster to expand but also potentially more fragile compared to family-centric models.

After reviewing the information, Hardy contemplated the upcoming meeting with Mr. Giannini.

Andy, observing Hardy's deep thought, guessed that Hardy had specific plans for the meeting.

After some time, Hardy looked at Andy. "Andy, if someone offered to buy our property, what would you be willing to let go?"

Andy considered for a moment. "Aside from HD Security, ABC TV, and Hardy Hotel, everything else is negotiable."

Hardy smiled and shook his head. "I think the Hardy Hotel should be replaced by Global Times."

Andy was surprised. "You're willing to let go of the casino business?"

"Businesses focused solely on making money can be let go if a more lucrative opportunity arises. Andy, what do you think we lack the most right now?" Hardy asked.

Andy, with his banking background, answered promptly. "We lack a bank. All major consortia are built around one or more banks, with other industries as pillars. If the Hardy Group had its own bank, it would be like an eagle spreading its wings and soaring."

Having been a banker himself, Andy understood the vital role a bank played in enterprise operations—from investing and stock trading to financial management and inter-company settlements.

"I agree," Hardy said. "I thought a bank was too early to consider, but maybe this is an opportunity."

"What are your plans?" Andy inquired.

"We'll see. It all depends on how Bank of America plans to cooperate. For now, everything is speculative," Hardy replied.

The plane landed smoothly at San Francisco Airport. HD Security's local team awaited their arrival. Hardy, Andy, and Henry were transported to Giannini Manor.

At the manor's entrance, a group of staff greeted them. The butler, looking into the car, said, "Mr. Hardy, Master has been expecting you. Please come in. He is waiting in the lobby."

The convoy entered the manor. Hardy exited the car, and a servant opened the door. Inside, a sprightly elderly man stood in the hall. Hardy greeted him with a smile. "Mr. Giannini, it's a pleasure to meet you. I'm honored to visit."

Hardy had read about the elderly man: 76 years old but still actively leading his family business.

Giannini extended his hand for a handshake. "Although I knew you were only 26, I'm still surprised to see you. In just two years, you've built a remarkable career."

"You're too kind," Hardy responded modestly.

"Let's sit down and talk. What would you like to drink?" Giannini asked with a smile.

"Tea," Hardy replied.

Giannini nodded. "I enjoy tea as well."

They sat down, and their aides stood at a distance, including Andy, who remained seated far away.

"Hardy, I'm very interested in the Las Vegas casinos. It's rare for someone to intervene in the Las Vegas market so freely. I appreciate the opportunity you've provided," Giannini said.

"I believe that collective success fosters growth," Hardy said with a smile.

"That insight is rare. I only realized this at forty. Unity leads to greater profits," Giannini remarked.

"So, what's your opinion on the new casino investment?" Giannini asked.

Hardy paused before replying. "I propose to retain 20% of the shares. If I manage the operation, I would prefer to receive operational dividends. If not, then I'd settle for equity dividends."

Hardy's approach was deliberate and non-confrontational.

Giannini observed him thoughtfully and said, "I believe it's best for you to manage it. You're most familiar with this area. The previous Hardy Hotel was exceptionally well-run. I trust your capabilities."

"If I am to manage it, I have one condition," Hardy said.

"Go ahead."

"During my tenure, I must have full management rights without shareholder restrictions. The agreement can specify terms, but if mismanagement leads to significant losses, the full management rights will be revoked, and shareholders will make decisions," Hardy stated.

Given that the casino investment was not aligned with the consortium's core interests, Hardy wanted to ensure he wasn't subjected to manipulation by shareholders.

Giannini seemed to see through Hardy's young facade and recognized the experienced strategist behind it.

The elderly man nodded. "I agree with your terms, and I'll support them on behalf of Bank of America. Specific shares, dividend ratios, and management shares will be discussed with other partners."

Hardy knew that as long as Giannini agreed, the matter was nearly settled.

Giannini sipped his tea and, after setting down the cup, asked, "Hardy, what are your plans for future industry development?"

Hardy sensed that Giannini's question was more than just a preliminary remark and anticipated further discussion.

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