“A price I can well afford,” said Armstrong. “Especially now that the paper has begun showing a profit every week. I only hope you’ll eventually find that possible at Multi Media.” He drew deeply on his cigar.
“That’s never been a problem for Multi Media since day one,” said Townsend. “With the sort of cash flow that company generates, my biggest worry is to make sure we have enough staff to bank the money.”
“I have to admit that coughing up three billion for that cowboy outfit showed you’ve got balls. I only offered Henry Sinclair one and a half billion, and then not until my accountants had gone over his books with a magnifying glass.”
In different circumstances Townsend might have reminded him that at the Lord Mayor’s Dinner at the Guildhall the previous year, Armstrong had told him that he had offered Sinclair two and a half billion, despite the fact that they wouldn’t let him even see the accounts—but not while E.B. was only a couple of paces away.
Armstrong sucked deeply on his cigar before delivering his next well-rehearsed line. “Do you still have enough time to keep an eye on my interests at the Star?”
“More than enough, thank you,” Townsend replied. “And although it may not have the circulation figures of the Tribune, I’m sure you’d be happy to exchange them for the Star’s profits.”
“By this time next year,” said Armstrong, “I can assure you that the Tribune will be ahead of the Star on both counts.”
It was Russell’s turn to raise an eyebrow.
“Well, let’s compare notes at next year’s dinner,” said Townsend. “By then it should be clear for anyone to see.”
“As long as I control 100 percent of the Tribune and 46 percent of the Star, I’m bound to win either way,” said Armstrong.
Elizabeth frowned.
“In fact, if Multi Media is worth three billion dollars,” Armstrong continued, “my shares in the Star must be worth at least a hundred million of anyone’s money.”
“If that’s the case,
” said Townsend, a little too quickly, “mine must be worth well over a hundred million.”
“So perhaps the time has come for one of us to buy the other out,” said Armstrong.
Both men fell silent. Russell and Elizabeth glanced at each other.
“What did you have in mind?” Townsend eventually asked.
Russell turned his attention back to his client, not quite sure how he would react. This was a question for which they hadn’t rehearsed a reply.
“I’d be willing to sacrifice my 46 percent of the Star for … let’s say one hundred million.”
Elizabeth wondered how Townsend would have responded to such an offer if she hadn’t been there.
“Not interested,” he said. “But I tell you what I’ll do. If you think your shares are worth a hundred million, I’ll let mine go for exactly the same amount. I couldn’t make you a fairer offer.”
Three people tried not to blink as they waited for Armstrong’s reaction. Armstrong inhaled once again before leaning across the table and stubbing out the remains of his cigar in Elizabeth’s crème brûlée. “No,” he finally said as he lit up another cigar. He puffed away for a few seconds before adding, “I’m quite happy to wait for you to put your stock on the open market, because then I’ll be able to pick it up for a third of the price. That way I’d control both tabloids in this city, and there are no prizes for guessing which one I’d close down first.” He laughed, and turning to his lawyer for the first time said, “Come on, Russell, it’s time we were on our way.”
Townsend stood there, barely able to control himself.
“Let me know if you have a change of heart,” said Armstrong loudly as he headed in the direction of the exit. The moment he felt sure he was out of earshot, he turned to his lawyer and said, “That man’s so strapped for cash he was trying to sell me his shares.”
“It certainly looked that way,” said Russell. “I must confess that was one scenario I hadn’t anticipated.”
“What chance do I now have of selling my stock in the Star?”
“Not much of one,” said Russell. “After that conversation it won’t be long before everyone in this city knows he’s a seller. Then any other potential buyer will assume that you’re both trying to offload your stock before the other gets the chance to.”
“And if I were to put mine on the open market, what do you think they might fetch?”
“If you placed that quantity of shares on the market in one tranche, it would be assumed you were dumping them, in which case you’d be lucky to get twenty million. In a successful sale there has to be a willing buyer and a reluctant seller. At the moment this deal seems to have two desperate sellers.”
“What alternatives am I left with?” asked Armstrong as they walked toward the limousine.