Chapitre 23: CH23
Two days later, on the 31st floor of One New York Plaza in Manhattan, New York.
Traders at Eldorado Fund were intensely focused, seated at their large desks surrounded by multiple monitors, with the beautiful view of the East River visible through the large windows behind them. They were heavily buying shares of NCR, the company AT&T was looking to acquire.
"$57,000 for 20,000 shares!"
"$57.11! Damn it, it's gone up already."
"Just buy at the market price!"
The order was quickly executed as soon as it was placed. As they continued to sweep up the available shares, the price started creeping upwards.
Landon, dressed in a designer tie and dress shirt, walked out of his office and gazed up at the large market display on the wall. He then approached Andrew, who was standing and giving orders to the traders, much like a commander in the heat of battle.
"At this rate, NCR stock is going to break $58 today," Landon remarked.
Andrew, who had his arms crossed, turned to look at Landon. He was wearing a perfectly tailored vest with the sleeves of his dress shirt rolled up, looking as energized as he did during his days at Goldman Sachs.
"With the amount we're buying, the price is inevitably going to rise," Andrew replied calmly.
"Yeah, we've already bought over $700 million worth of stock. It'd be more surprising if the price didn't move," Landon nodded in agreement.
Andrew corrected him in a steady voice, "We've bought over $800 million worth just this morning."
Landon's eyes widened in surprise, his expression one of genuine admiration. With NCR's market capitalization at roughly $3.8 billion, an $800 million stake represented nearly 20% of the company. Accumulating such a large position in just two weeks, while only driving the price up by 16%, was nothing short of impressive.
While Landon was clearly impressed, Andrew remained as calm as ever. He reached into a tin on his desk, took out a peppermint, and bit down on it with a satisfying crunch.
"It's been relatively smooth so far, but by now, other players must have noticed something's up. The average buy-in price is going to start climbing."
Landon shrugged, acknowledging the inevitable. "We've already been instructed to keep the average price below $70, so as long as we stick to that, we're fine."
Andrew, a little irritated by the suggestion that he would let the price get that high, replied, "It's our first time showing what we can do here; we'll keep it below $60."
Landon smirked, pleased with the competitive spirit, "Even better."
Just then, a ripple of commotion spread through the traders.
"Oh no…"
"Is this for real?"
Sensing the shift in the atmosphere, Andrew frowned and raised his voice. "What's going on?"
Mason, sitting at the front, turned around in a hurry. "Bloomberg just broke the news that AT&T is acquiring NCR!"
Andrew's frown deepened as he quickly bent over his desk to check his Bloomberg terminal.
[Breaking News: December 10, 1992
AT&T announces acquisition of NCR for $105 per share, totaling $8 billion.
This acquisition is expected to position AT&T as a leader in hardware, software, and services by expanding into the computer industry.]
As soon as Andrew confirmed the news, he looked up at the large market display on the wall.
Sure enough, NCR's stock price was skyrocketing like a rocket taking off, climbing sharply.
In no time, it had breached $60, prompting traders all around to start shouting.
"Holy crap, it's at $70!"
"How high is it going to go?"
"Shit, there's no stock available at these prices!"
With the announcement of the M&A, all the available stock on the market had suddenly vanished, while buy orders flooded in from all directions.
NCR's stock soared past $70 in a matter of minutes, leaving the traders in disarray.
"Good grief, $70 already?"
"How much higher will it go?"
"Damn it, there's no stock available at this price!"
Andrew, realizing the need to regain control, clapped his hands loudly to draw everyone's attention.
Clap!
"Everyone, listen up!"
The traders stopped their chatter and turned to face Andrew, who spoke in a firm, commanding tone.
"Stop all buying immediately."
The unexpected order left everyone stunned. Mason raised his hand, confused.
"We haven't reached our target volume yet. Are you sure about this?"
The other traders also nodded in agreement, casting puzzled looks at Andrew. Even Landon was curious.
"If we keep buying now, we'll drive the price way beyond what's reasonable."
With about $200 million left in their account, Andrew knew that pushing it all into the market would only add fuel to the already raging fire.
"Stop placing orders and watch the market until things settle down."
Andrew's stern voice made it clear that he wasn't open to debate.
"Understood?"
"…Yes, sir."
Although the traders understood the logic, they couldn't help but feel a bit deflated. The sudden halt left them feeling like they hadn't properly finished the job.
"Alright then, why don't you all take a break and grab a beer from the fridge in the break room?"
Andrew waved his hand dismissively, lightening the mood.
The traders, who had been on edge, exchanged hesitant looks before gradually starting to relax. Some remained at their desks, watching the monitors, while others headed to the break room or went outside for a smoke.
As he watched them, Landon turned to Andrew, concern evident on his face. "Are we really stopping the stock accumulation here?"
"What are you talking about? We'll keep going until we reach our $1 billion target."
Landon was momentarily speechless at Andrew's nonchalant response.
"Then why did you just order the buying to stop?"
Andrew popped another peppermint into his mouth, crushing it between his teeth as he explained.
"As you can see, the stock price is overshooting right now, and there's hardly any stock available to buy."
"Shouldn't we raise our price and keep buying, then?"
Landon asked anxiously. Andrew glanced at the market display on the wall before replying.
"That would only drive up the average cost of our holdings. Sometimes, the best move is to do nothing."
"But what if we miss the opportunity to buy more stock?"
Landon, still uneasy, met Andrew's gaze. Andrew smiled confidently.
"That won't happen."
"What?"
Landon looked puzzled.
"Right now, everyone's scrambling because of the M&A news. But once the initial excitement wears off in a few days, people will start thinking more rationally."
As Landon considered this, his eyes lit up with understanding.
"Ah! And when they realize the M&A might not go through, the stock price will drop again."
"Exactly."
Andrew nodded.
"$105 per share is only if the deal goes through. Soon, the sellers will come back, and we'll be able to buy the remaining shares at a reasonable price."
While there would always be some who held out for the full price, many shareholders would likely take profits during the surge.
"At that point, we'll be able to buy up the rest of the shares without driving up our average cost too much."
Landon, impressed by Andrew's strategic thinking, nodded in agreement, choosing not to argue further.
[…So, we decided to pause the buying for now.]
Seok-won, who had parked his bicycle near his dormitory building, nodded slightly as he listened to Landon's report over the phone.
"That's better than rushing in and overpaying."
[I thought so too. Just because an M&A is announced doesn't mean it's guaranteed to go through. It'll take at least a few months for all the procedures to be completed, and in that time, there will be shareholders who get nervous or want to take profits.]
"Exactly."
Satisfied, Seok-won smiled.
"Most people panic in situations like this and make mistakes. But it sounds like Andrew handled it well. I think we can trust him to manage the fund's trading from now on."
[We'll need to see the final results, but he certainly isn't a novice.]
Landon was cautious by nature, but he shared Seok-won's sentiment.
"I'll be in Korea for the holidays, so keep me updated on any changes."
[Are you heading back to your home country for the break?]
"Yes."
[Understood. Have a safe trip.]
"Talk to you soon."
After ending the call, Seok-won slipped his phone into his backpack and muttered to himself.
"Andrew might be even more capable than I expected."
It was always a good thing to have talented people working under him.
After locking the front wheel of his bicycle to prevent theft, Seok-won entered the dormitory building. As he walked in, the janitor, who was tidying up the lounge area, called out to him.
"Seok-won, you've got some mail."
"What is it?"
"Hold on."
The janitor left and returned shortly with a heavy-looking package in his arms.
"Here you go."
Seok-won accepted the package and checked the return address on the label.
[New York 303E… Daeheung Group's America branch]
From the sender, he had a pretty good idea of what it was.
"Thank you."
He thanked the janitor and carried the package upstairs to his room.
When he arrived at his door, he pulled out his key, only to find that the door was already unlocked.
"What's this? Is he back already?"
He turned the handle and pushed the door open, only to see Roy lying flat on his bed, looking defeated.
"You're back."
Setting the package and his backpack on the desk, Seok-won put one hand on his hip.
"What's up? Why do you look like you've just seen a ghost?"
"Damn it, I flunked two of my classes."
Roy groaned and buried his face in his pillow, rolling around on the bed.
"Oh, is that all?"
Roy shot up and glared at him, his voice tinged with hurt.
"How can you be so nonchalant about me failing my classes?"
"Before you complain about it, maybe you should reflect on your behavior. You skipped classes like it was your job, so it would be more surprising if you got good grades."
Roy pouted, unable to argue with the harsh truth.
"Fine, I guess I was crazy to expect sympathy from you."
"Are you upset?"
"No, I'm not upset!"
Hugging his pillow, Roy turned away, looking like a sulking child.
"You can always make up for it next semester. If that doesn't work, you can extend your graduation and take summer classes, so don't be too down about it."
"And you call that consolation? Damn you."
Roy scowled, but he wasn't very intimidating.
"You should've just done better in the first place."
"I said, drop it!"
Roy threw his pillow down on the bed with a loud whack, his shoulders rising and falling with frustration.
"Damn it, maybe I should just drop out of school and start building computers for a living."
"Well, that's not too bad of an idea."
Roy stared at him in disbelief.
"Are you even my friend? You're supposed to talk me out of it!"
"It's your choice, isn't it? And who knows? Maybe you'll build a successful computer business and become a billionaire in ten years."
With the example of Dell Computers in mind, Seok-won wasn't just saying it as a joke. However, Roy, who was unaware of this, looked annoyed and glared at him before sighing heavily.
"Ugh, whatever. You're too cool to care."
Roy got off the bed and grabbed the jacket draped over his desk chair.
"Where are you going?"
"I'm going out for a beer to drown my sorrows."
Roy walked out of the room. As the door closed with a soft thud, Seok-won clicked his tongue and scratched the back of his head.
"Maybe I was a bit too harsh."
It felt strange to see someone who was always so carefree looking so troubled.
Even if it was his own fault, maybe he should have been a bit more gentle. Seok-won shook his head to rid himself of any lingering guilt.
"No, he needs a shock to snap him out of it."
He took off his coat and hung it in the closet before unwrapping the package on his desk.
Removing the paper revealed a bundle of newspapers.
Since this wasn't an era where he could instantly access Korean news online, he had asked Song Dong-sung, the manager who had visited him at school, to send him domestic newspapers weekly.
As Seok-won untied the string holding the newspapers together, he picked up the top one, frowning as he flipped through it.
"I can't wait until the internet becomes available. It's really inconvenient to have to rely on newspapers like this."
Not only was it a hassle, but he couldn't get the news until several days after it happened, which was incredibly inconvenient.
As he flipped through a few pages, a headline caught his eye, and his eyes widened in surprise.
"What?"
[Daeheung Group Acquires Taesan Securities!]
État de l’alimentation hebdomadaire
-- Classement
Power Stone 
-- Power
stone