The Conglomerate Family Became A Villain [EN]: Chapter 129

129. To Nasdaq (2)

Sarah set down her teacup and said,

“They were really pushing you hard today, weren’t they?”

Hyun-woo Jeong sat across from her, his eyes closed.

“I missed McNamara’s speech.”

“Is it just a simple venting of anger?”

“It’s not just a simple venting. I was angry in many ways.”

Sarah knew why Hyun-woo Jeong was angry.

“You mean they didn’t treat you like a VIP?”

“That too, and I felt like they were looking down on Victoria Corporation.”

JPMorgan was one of the top three banking groups in the United States. In terms of size and history, it was incomparable to Victoria Corporation.

However, Henri Arnault was not JPMorgan itself. He was just one of the managers employed by JPMorgan.

Hyun-woo Jeong didn’t like that Henri Arnault was more arrogant than Neil Hamilton.

‘Just because you use honorifics doesn’t mean you’re showing respect.’

Henri Arnault used idioms, classical phrases, and polite expressions to create an effect similar to honorifics [formal titles or respectful language].

However, he couldn’t hide the arrogance in his tone and expression.

Sarah spoke soothingly to him.

“Most older people are like that. It’s like they can’t accept things like computers or networks.”

The 20th century was rushing towards its end. But still, people born in the early 20th century held the world’s power and wealth in their hands.

“They were really pushing for the data center too. Are you sure it’ll be okay?”

Hyun-woo Jeong answered Sarah’s question.

“We need to build the data center as soon as possible.”

Sarah tilted her head at his answer.

“Was the data center such an urgent matter?”

“The data accumulating since Bank of America’s American Service started is increasing rapidly. Borrowing data centers from other companies won’t last long.”

Sarah sighed briefly.

“Haa… That means more money is going in.”

As CFO [Chief Financial Officer], she didn’t like businesses that cost a lot of money.

“And I’d like to buy a building in New York too.”

“In New York?”

“I want to build a small data center there too.”

“Weren’t data centers supposed to be built on the outskirts of the city?”

Hyun-woo replied with his eyes closed.

“Not the main center, just a small data center, literally.”

“Hmm, then we don’t need to buy a big building.”

“A small building should be enough.”

Sarah nodded and asked.

“Something with low floors?”

“The lower, the better.”

“Any other requirements? Like around Central Park?”

“Around Central Park is expensive, so it doesn’t matter if it’s far from Central Park.”

Sarah nodded.

“So you’re aiming for cost-effectiveness?”

“But I don’t want to miss out on air rights.”

Air rights.

In New York, buildings not only had rights to the land they sat on.

Due to the nature of New York, with its many skyscrapers, they also had rights to the space above them, their air.

Some architects bought these air rights from surrounding buildings to use in the construction of super-tall buildings.

Sarah raised her right index finger and pointed it forward, saying.

“So, to summarize, it would be like this: not too tall, doesn’t have to be too close to key areas like Central Park, and must have secured air rights.”

Hyun-woo Jeong nodded and took her words.

“Yes, that’s about what I’d like to request. Does Sarah have any requirements?”

“Me? I guess the price would be the issue.”

Hyun-woo Jeong opened his eyes and turned to her.

“You mean you want to buy it as cheaply as possible?”

Sarah smiled and shook her right index finger.

“Bingo.”

She didn’t want to invest a lot of money in buildings or construction.

‘Real estate is the biggest enemy that hinders cash flow.’

Of course, you could take out a loan using real estate as collateral. But after the oil shock [a period of significant oil price increases in the 1970s], companies knew that interest rates could rise at any time.

“I’ll leave this to Sarah as well.”

“Leave it to me.”

In the meantime.

JPMorgan Investment Bank’s Deputy Head, Henri Arnault, was very angry.

He summoned several executives, including the head of the technology division, to the conference room.

“Eric, do you think the data center is absolutely necessary for JP Services?”

Eric Vogel had risen through the ranks without being caught up in Neil Hamilton’s downfall and was now the head of the technology division.

This position was originally Sean Luke’s.

“I understand that we have about 2-3 years of leeway given the current situation.”

Henri Arnault asked again.

“What if 2-3 years pass?”

“We’ll need a new data center.”

“So you’re saying it’s absolutely necessary.”

Eric Vogel was an engineer and developer, so he spoke his mind honestly.

“If you ask me if it’s absolutely necessary, I would say yes.”

“Good. Let’s move on from that.”

JPMorgan Investment Bank executives knew that Henri Arnault’s voice was different from usual.

‘Something bad must have happened.’

‘He seems to be in a bad mood.’

‘I need to be careful today so I don’t get caught in the crossfire.’

Henri Arnault spoke about the second agenda item.

“The next item is about network security. Victoria Corporation wants to develop a network security system with us. Eric, what do you think?”

As the head of the technology division, Eric Vogel had no choice but to face Henri Arnault’s arrow head-on.

“I think the current security system is sufficient, but I also think it’s not a bad idea to invest for the future.”

“Reason?”

“Because hackers’ skills are improving day by day.”

In the 1980s, hackers were representative of computer engineers, as they were featured in movies and dramas.

Several executives agreed with Eric Vogel’s opinion.

“Mr. Arnault, hacking incidents can be a critical blow to a company’s image.”

“I think an advanced security system will be necessary in the future, even to attract VIP clients.”

In the past, security systems involved creating a huge vault and installing CCTV [closed-circuit television] and various sensors in front of it.

However, modern security systems focused more on protecting accounts and data within computers.

“We need a security system even to protect ATMs [Automated Teller Machines].”

In the 1980s, automated teller machines, commonly known as ATMs, were widely distributed throughout the United States.

They were connected to the bank’s central network system, and Hollywood movies often showed scenes of money being stolen from these ATMs through hacking.

Henri Arnault listened to the executives’ opinions and crossed his arms.

“So you’re saying this is necessary too.”

Eric Vogel added.

“Victoria Corporation currently has the best network technology. If we develop the next-generation security system with them, I think we can stay ahead of our competitors.”

Henri Arnault had no choice.

‘Do I have to work with that kid again?’

He couldn’t help but sigh inwardly.

“Okay. Everyone, you may leave.”

Regardless of Henri Arnault’s bad expression, the meeting ended quickly.

“John, you stay.”

John Peer was a man known as Henri Arnault’s right-hand man.

“Understood.”

After everyone left, Henri Arnault asked him.

“John, what do you think of Charlie Jeong?”

John Peer paused for a moment to gather his thoughts before answering.

“Wouldn’t you say he’s an investor with excellent instincts?”

“An investor, not an engineer?”

“I know his company creates excellent systems. But I’ve heard that the people actually in charge of programming and design are engineers from MIT [Massachusetts Institute of Technology]. If you combine that with the instincts he showed in his investment in Japan, you get a rough picture, don’t you?”

Henri Arnault crossed his arms and took his words.

“Hmm. So you’re saying he just gathered talented people and had them create what he needed.”

“That’s what I think.”

Henri Arnault didn’t object to John Peer’s opinion.

‘That certainly sounds plausible.’

If you filter out his age, Hyun-woo Jeong’s vision and perspective were excellent in many ways.

“Okay, let’s move on.”

John Peer could tell that Henri Arnault was angry at Hyun-woo today.

‘Come to think of it, Mr. Arnault’s schedule today included a meeting with Victoria Corporation.’

He thought that the issues mentioned earlier were discussed at that meeting.

“Next would be Victoria Corporation?”

Henri Arnault chuckled and replied.

“It seems you’ve read my mind.”

“I think Victoria Corporation is a good company, but I think Neil invested too much.”

“Charlie Jeong wants to list Victoria Corporation on the Nasdaq [National Association of Securities Dealers Automated Quotations].”

John Peer thought.

‘Victoria Corporation has become a company big enough to be listed on the Nasdaq. The problem is Mr. Arnault’s position.’

The successful listing of Victoria Corporation was more likely to be the basis for Neil Hamilton’s return than a brilliant achievement for Henri Arnault.

‘Neil acquired the shares of Victoria Corporation, not Mr. Arnault.’

He guessed that Henri Arnault was negative about listing Victoria Corporation.

“If Charlie Jeong wants an IPO [Initial Public Offering], all we can do is stall for time.”

Henri Arnault sighed deeply.

“Hoo… He gave me an ultimatum today.”

“An ultimatum… You mean he’ll change partners if we stall any longer?”

“That’s right. If we reject his proposal, Bank of America will take Victoria Corporation’s listing.”

Bank of America was the most troublesome presence for JPMorgan.

“This can’t be helped.”

“You think we should accept Charlie Jeong’s proposal?”

“Yes.”

Henri Arnault knew there was no other option. But he didn’t like being manipulated by Jeong Hyun-woo’s intentions.

‘It feels like I’m being swayed by a kid.’

He unfolded his arms and asked.

“Isn’t there a better way?”

John Peer lowered his head.

“I’m sorry. I can’t think of anything other than what I said earlier.”

Henri Arnault was one step ahead of John Peer when it came to scheming. There was no way John Peer could come up with something that he couldn’t think of.

“You will also attend the meeting a little later.”

John Peer widened his eyes at his instruction.

“It’s almost time to go home.”

“Charlie Jeong is coming. Full of confidence.”

John Peer couldn’t help but sigh inwardly.

‘Hoo… This is the real reason he called me.’

What Henri Arnault wanted was an ally to fight against Jeong Hyun-woo.

* * *

Darkness fell outside the window.

Jeong Hyun-woo and Sarah, and Henri Arnault and John Peer, entered the meeting without even having dinner.

“Let’s discuss the third and second topics again.”

Henri Arnault’s voice was strong, as if he had recovered from the shock.

Jeong Hyun-woo also looked calm, as if his anger had subsided.

“Shall we start with the second topic again?”

The second topic discussed earlier was about the data center.

The two had agreed on the construction of the data center but had not agreed on how to raise the funds for it.

“Since JPMorgan has rejected the loan, we are looking into other options.”

Henri Arnault turned his gaze to John Peer and said.

“At John’s earnest request, we have reviewed Victoria Corporation’s proposal once again.”

This was not true, but Jeong Hyun-woo didn’t care.

“You mean you’ve reviewed our proposal again?”

“That’s right.”

As Henri Arnault spread out his hands, Sarah asked.

“Does that mean JPMorgan can lend us the construction funds?”

“I think a conditional loan is possible.”

He wasn’t saying he would just give it to them.

“What are the conditions?”

“Repay the principal within 5 years after the data center is completed.”

It was a 5-year medium-term loan.

“What’s the amount?”

“How about half of the construction cost?”

“The land purchase is calculated separately, right?”

Henri Arnault nodded and replied.

“We can only lend for the construction cost because we have to use the land as collateral.”

The loan amount that Sarah calculated was about 40%.

‘40% of the total budget.’

It wasn’t a terrible condition. But it wasn’t a condition that could be called good.

“What about the interest rate?”

Interest rate.

This part was important.

“We don’t care whether it’s variable or fixed.”

Henri Arnault passed the ball to Victoria Corporation.

Sarah and Jeong Hyun-woo had not discussed this, so they couldn’t help but hesitate.

“Charlie.”

As Sarah called Jeong Hyun-woo, he said calmly.

“Decide in a way that benefits the company.”

He didn’t want to show an unprepared appearance in front of Henri Arnault. So he decided to leave everything to Sarah.

Sarah turned her gaze to Henri Arnault and said.

“We’ll go with variable.”

“You mean you’ll receive the market interest rate as a variable rate?”

Sarah answered without hesitation.

“I think we can go that way.”

The reason she chose a variable interest rate was because she thought Victoria Corporation had the strength to withstand even if international affairs or economic conditions changed rapidly.

‘Considering the loan amount, the company won’t be shaken even if the interest rate rises significantly.’

Henri Arnault picked up a pen at her answer.

“Okay. Then I’ll set the condition as a variable interest rate with a 5-year repayment period.”

He knew that Victoria Corporation had loans of over $20 million.

‘If loans of 20 or 30 million dollars are added here, Victoria Corporation will not be able to escape our JPMorgan.’

Henri Arnault was most wary of Victoria Corporation moving to Bank of America.

“Now, let’s move on to the third topic.”

At Sarah’s words, John Peer raised his right hand.

“I’ll talk about this.”

He had discussed it with Henri Arnault beforehand.

Jeong Hyun-woo knew that he was the head of the JPMorgan Fund.

“Did you move to the network security side?”

At his sharp question, John Peer smiled awkwardly.

“I’m currently the head of the fund, but there was a time when I was in the technology division.”

This was not a lie. However, he had only worked in the technology division for exactly 3 months.

“I see. Go ahead.”

John Peer coughed lightly and said.

“Hmm, hmm. JPMorgan is positively reviewing the development of the next-generation network security system proposed by Victoria Corporation.”

“If it’s a positive review, does that mean you can’t give us a definite answer at this meeting?”

“I think we need to get approval from the board of directors because it’s not a small project.”

Jeong Hyun-woo put his hands together at his words.

“Is the board of directors a non-regular one? Or a regular board of directors?”

“We plan to get approval at the regular board of directors meeting.”

The regular board of directors meeting for the second half of 1984 had already ended.

“So you’re saying you’ll let us know the answer in 1985.”

“We are currently reviewing it positively, so unless there are any unexpected events, I think it will go well.”

It will proceed unless there are any unexpected events.

Jeong Hyun-woo thought of this answer as a formalized expression.

‘That means it can be broken at any time.’

He and Victoria Corporation had no choice but to consider Plan B.