Sons of Fortune

“What percentage do we think they’ll end up with?” asked Julia.

“They had 47.89 percent at midnight on Saturday, and may have picked up a few more shares on Sunday, but I doubt it.”

“And the price?”

“At close of business on Friday they were $7.32,” said Logan, “but after this morning’s announcement, all pledges are automatically released and Fairchild’s cannot make another bid for at least twenty-eight days.”

“That’s when I plan to put a million of Russell’s shares on the market,” said Nat.

“Why would you do that?” asked Julia, “when our shares would be certain to fall sharply.”

“So will Fairchild’s because they own nearly fifty percent of us,” said Nat, “and they can do nothing about it for twenty-eight days.”

“Nothing?” repeated Julia.

“Nothing,” confirmed Logan.

“And if we then use the extra cash to buy Fairchild’s shares as they begin dropping…”

“You would have to inform the SEC the moment you reached six percent,” said Logan, “and at the same time let them know that it’s your intention to make a full takeover bid for Fairchild’s.”

“Good,” said Nat, as he pulled the phone toward him and dialed ten digits. No one spoke as the chief executive waited for the phone to be answered. “Hi, Joe, it’s Nat, we’re going ahead as planned. At one minute past ten, I want you to place a million of the bank’s shares on the market.”

“You realize they’ll drop like a stone,” said Joe, “because you’re about to turn everyone into a seller.”

“Let’s hope you’re right, Joe, because that’s when I want you to start mopping up Fairchild’s shares, but not until you think they’ve bottomed out. And don’t stop until you’ve got hold of five point nine percent.”

“Understood,” said Joe.

“And, Joe, just be sure you keep an open line night and day, because you’re not going to get much sleep during the next four weeks,” added Nat before replacing the receiver.

“Are you sure we’re not breaking the law?” asked Julia.

“Certain,” said Logan, “but if we pull it off, my bet is that Congress will have to rewrite the legislation on takeovers in the very near future.”

“And do you consider what we’re doing is ethical?” asked Julia.

“No,” said Nat, “and it wouldn’t have even crossed my mind to behave this way if we hadn’t been dealing with Ralph Elliot.” He paused. “I did warn you that I was going to kill him. I just didn’t tell you how.”

39

“You’ve got

the chairman of Fairchild’s on line one, Joe Stein on line two, and your wife on line three.”

“I’ll take the chairman of Fairchild’s. Ask Joe Stein to hold and tell Su Ling I’ll call back.”

“Your wife said it was urgent.”

“I’ll call her back in a few minutes.”

“I’m putting Mr. Goldblatz through.”

Nat would have liked a few moments to compose himself before he spoke to the chairman of Fairchild’s; perhaps he should have told his secretary that he would call him back. For a start, how should he address him: Mr. Goldblatz, Mr. Chairman or sir? After all, he had been chairman of Fairchild’s when Nat was still at Harvard Business School doing case studies on banking.

“Good morning, Mr. Cartwright.”

“Good morning, Mr. Goldblatz, how can I help you?”