Sons of Fortune

“It’s taken you forty years to build your reputation, Mr. Goldblatz. I can’t believe you’d be willing to trade it in just months before you’re due to retire.”

“I too am flattered, young man, but, like you, not overwhelmed. Therefore might I suggest that it was you who requested this meeting to put forward your proposal that, rather than continue to fight each other, we should in fact work together.”

“A partnership?” said Nat.

“Call it what you will, Mr. Cartwright, but if our two banks were to merge, no one will have lost out, and more important, all our shareholders will benefit.”

“And what terms are you suggesting that I should recommend to you, not to mention to my board?”

“That the bank be called Fairchild-Russell, and that I remain chairman for the next eighteen months, while you are appointed my deputy.”

“But what will happen to Tom and Julia Russell?”

“Obviously they would both be offered a place on the board. If you become chairman in eighteen months’ time, it would be up to you to appoint your own deputy, although I think you might be wise to keep Wesley Jackson on as your chief executive. But as you invited him to join your board some years ago, I can’t believe you’d find that a setback.”

“No, I wouldn’t, but that doesn’t solve the problem of stock allocation.”

“You currently hold ten percent of Russell’s, as does your chairman. His wife, who incidentally I think should manage our combined property portfolios, did at one point possess as much as four percent of the stock. But I suspect that it has been her shares that you have been releasing onto the open market for the past few days.”

“You could be right, Mr. Goldblatz.”

“In turnover and profits Fairchild’s is rou…rou…roughly five times the size of Russell’s, so I would suggest that when you put forward your proposal, you and Mr. Russell ask for four percent and settle for three. In the case of Mrs. Russell, I would have thought one percent would be appropriate. All three of you will of course retain your present salaries and benefits.”

“And my staff?”

“The status quo should remain for the first eighteen months. After that, the decision will be yours.”

“And you want me to approa

ch you with this offer, Mr. Goldblatz?”

“Yes, I do.”

“Forgive me for asking, why don’t you simply make the proposal yourself, and let my board consider it?”

“Because our legal advisors would recommend against it. It seems that Mr. Elliot has only one purpose in this takeover, and that is to destroy you. I also have only one purpose, and that is to maintain the integrity of the bank I have served for over thirty years.”

“Then why not just sack Elliot?”

“I wanted to, the day after he sent out that infamous letter in my name, but I couldn’t afford to admit we might have an internal disagreement only days before we were facing a takeover. I can just imagine what the press would make of that, not to men…men…mention the shareholders, Mr. Cartwright.”

“But once Elliot hears the proposal has come from me,” said Nat, “he’ll immediately advise your board against it.”

“I agree,” said Goldblatz, “which is why I sent him to Washington yesterday so that he can report directly back to me once the Securities and Exchange Commission announces the outcome of your takeover bid on Monday.”

“He’ll smell a rat. He knows only too well that he doesn’t need to sit around in Washington for four days. He could fly down on Sunday night, and still brief you on the Commission’s decision on Monday morning.”

“Funny you should mention that, Mr. Cartwright, because it was my secretary who sp…sp…spotted that the Republicans are having their midterm get-together in Washington ending with a dinner at the White House,” he paused, “I had to call in more than one favor to ensure that Ralph Elliot received an invitation to that august gathering. So I think you’ll find he’s fairly preoccupied at the moment. I keep reading in the local press about his political ambitions. He denies them, of course, so I assume it has to be true.”

“So why did you employ him in the first place?”

“We’ve always used Belman and Wayland in the past, Mr. Cartwright, and until this takeover, I hadn’t come across Mr. Elliot. I blame myself, but I am at least attempting to rectify the mistake. You see, I didn’t have your advantage of losing to him twice in the past.”

“Touché,” said Nat, “so what happens next?”

“I have enjoyed meeting with you, Mr. Cartwright, and I shall put your proposal to my board later this afternoon. Sadly one of our members is in Washington, but I would still hope to be able to phone you back with our reaction later this evening.”

“I’ll look forward to that call,” said Nat.