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CH294 | Heir
🕑 Added 2025-09-21 05:39:01 +0000 UTCThe White House moved incredibly fast.
Less than two weeks after informing the Treasury Secretary of Taewoo Group’s intent to acquire GM, the automaker filed for bankruptcy protection.
“GM’s stock has really fallen into the cents range.”
“It’s still dropping. It might even go as low as 75 cents.”
One executive gave a wry smile as he stared at GM’s stock chart.
It was the reaction one would expect from seeing a company once hailed as America’s pride reduced to a penny stock.
“Now, it seems no one will make a fuss over GM being sold.”
“The number has decreased, but there’s still one person causing trouble. Former New York Mayor Giuliani keeps appearing in the media, voicing his opposition to foreign acquisitions.”
“You mean Rudy Giuliani, the former mayor who lost in the Republican presidential primaries?”
“That’s right. I’m not sure if he’s trying to rally supporters for the next election, but he has even claimed that President Obama isn’t a patriot for attempting to sell an American company overseas.”
I had heard of the politician a few times before.
He was one of the Republican presidential candidates and, during his tenure as mayor of New York, was known to have considerable influence.
“The candidate who reached the primaries sure has a sharp tongue.”
“It seems he’s trying to undermine the president’s approval ratings and strengthen his own position. We need to respond defensively. If Republican supporters rally behind him, it could create some complications.”
“Begin with a passive response. There’s no need to confront him head-on and draw more attention.”
“Right now, Giuliani’s statements haven’t gained much traction. Managing social media alone should be sufficient, without engaging mainstream media.”
It took considerable effort to influence the mainstream media.
But social media didn’t require such exertion.
After all, it was under our control. Stopping Giuliani’s statements from being shared was a task easily handled by just one developer.
“Manage it this way for a few days. A news story that will completely turn public opinion is about to break.”
Even if former Mayor Giuliani tried to rally his supporters, the game was already over.
We had already planned a news story so compelling that no one could oppose GM’s sale, making active defense unnecessary.
***
A few days later.
Former New York Mayor Giuliani appeared on live television for an interview.
“Former Mayor Giuliani, GM has filed for bankruptcy. Do you still oppose foreign capital acquiring an American automaker?”
“They’ve filed for bankruptcy, but they haven’t actually gone bankrupt yet. And to preserve our pride, it might be better if they did go bankrupt.”
“Are you saying that it’s worth preserving pride even if it means tens of thousands of workers in the automotive industry suffer?”
The host’s question was sharp and difficult to answer.
Yet former Mayor Giuliani replied without the slightest hesitation.
“To protect a great America, some choices are unavoidable. And if the U.S. government steps in, bankruptcy wouldn’t even be necessary. Isn’t that what taxpayers’ money is for?”
“Some argue that using taxes to save a company encourages moral hazard.”
“The ideal solution would be for American capital to acquire GM. But under current circumstances, the U.S. government must either provide additional bailout funds or let the company go bankrupt. Those are the two options.”
Giuliani spoke boldly.
The host, sensing that continuing the interview would only produce the same responses, was about to wrap up.
At that moment, people around him started moving quickly, and a writer handed the host a note.
“A breaking news update just came in. Three companies have formed a consortium to acquire GM. The consortium consists of Taewoo Group, FinTech Bank, and Warren Buffett’s Berkshire Hathaway.”
The host’s hands trembled as he announced the breaking news.
Even a professional with twenty years of experience was tense in the face of this unexpected development.
But a pro remained a pro. The host quickly regained composure and turned to Giuliani with a question.
“Berkshire, FinTech Bank, and Taewoo Group have joined forces. Two American entities and one foreign. Do you still oppose GM being sold to this consortium?”
“······.”
Former Mayor Giuliani was at a loss for words.
Until now, he had answered every question without hesitation, but the sudden breaking news left him visibly flustered.
Looking at the members of the consortium, it was hard to even classify them as foreign capital.
Yes, Taewoo Group was included, but the consortium also contained FinTech Bank, which had grown into one of America’s top financial institutions, and Warren Buffett’s Berkshire Hathaway, known as the Sage of Omaha.
What if he still opposed it here?
It could look like opposition for opposition’s sake, and everything he had argued until now might appear false.
So, Giuliani chose his last option.
“We’ll conclude today’s interview here. I will review the consortium further and announce my position later.”
A tactical retreat.
It was not a bad decision.
Having served as mayor of New York, he made a swift political judgment and chose the best course of action: escape.
A quiet brunch restaurant in Washington.
Treasury Secretary Timothy had already arrived, and as I stepped inside, the owner locked the door.
“As an apology for my earlier rudeness in showing up at your hotel room, I’ve brought you to a restaurant only I know about.”
“There was no need to call it rude, but I’ll enjoy the meal nonetheless.”
It was a place specializing in the typical brunch menu, with a focus on Eggs Benedict.
The muffins were halved, topped with bacon and perfectly poached eggs, a combination that suited even a Korean palate quite well.
“How do you find it? I’ve never seen a better brunch spot in Washington.”
“It’s quite clean and flavorful. I’ll have to come here every time I’m in Washington.”
“I’m glad you like it. But I was truly surprised when I saw the news. How did you manage to plan and execute something like that in such a short time?”
The consortium for acquiring GM.
FinTech Bank, with the capital strength of America’s top financial institution.
Berkshire Hathaway, led by Warren Buffett, the man known as the Sage of Omaha.
And finally, Taewoo Group.
Even the Treasury Secretary was astonished by the combination.
His reaction reflected the sentiment of the American public as well.
“Do you remember the promise I made? That we would proceed with the GM acquisition without going against public opinion?”
“Public opinion has completely reversed. Over 70% now support selling GM to the financial consortium. With this level of support, the White House and political leaders can push the acquisition forward without hesitation.”
The Treasury Secretary spoke with a smile.
He looked pleased, having successfully handled his first assignment since being appointed Secretary.
“Public opinion is far more positive than I expected.”
“That’s likely thanks to Taewoo Group’s image. Many people remember how committed the group was to rescue efforts during the 9/11 attacks.”
“It wasn’t about seeking recognition or reward. So, do you now truly believe I intend to acquire GM sincerely?”
“Of course I do.”
The Treasury Secretary had threatened reprisals if GM wasn’t acquired.
GM was far too large for Taewoo Group to handle alone, but by forming a consortium to share the risk, the Secretary’s suspicions naturally melted away.
“I’ve kept my promise, so I expect the government to keep theirs. If the acquisition proceeds as it stands now, bankruptcy will only be delayed. Real institutional improvements and systemic changes are necessary.”
“The government is pressuring the United Auto Workers at a national level. We’re making every effort to satisfy all conditions, including plant relocations, restructuring, and the introduction of automated equipment.”
The Treasury Secretary’s frank statements could only be made with authorization from above, indirectly confirming that the White House was willing to actively support my proposals.
“Then I’ll meet with GM’s executives and the creditors to proceed with the acquisition. Most likely, FinTech Bank’s Chairman Dimon will take the lead directly.”
“Chairman Dimon has an excellent reputation. We will do everything we can on the government side to ensure the acquisition process is completed as quickly as possible.”
“Ah! But former Mayor Giuliani was strongly opposing the acquisition. Is he still making waves?”
“Hmm, he won’t be giving any more interviews on this matter. We have received a formal warning from the Republican Party. And even if he made such claims, very few would support him, so there’s no reason for him to continue.”
The preparatory work for the acquisition was now complete.
All that remained was to carry out the acquisition itself, a task Dimon was already in the process of handling.
***
CITI Group Chairman’s Office.
As the chairman’s office of America’s largest financial institution, it wasn’t a place just anyone could enter—but I stepped inside as comfortably as if it were my own home.
“Chairman Dimon! It’s been a while.”
I greeted Dimon warmly.
He quickly slammed the door behind him and returned the greeting.
“There’s no need for formalities between us. Just call me by my name.”
“Shall I do that then? How’s the GM acquisition going?”
“It’s been a while since I could work in my area of expertise, and I’m really enjoying it.”
Dimon was an expert in mergers and acquisitions.
He particularly excelled at trimming the rotten parts of failing companies to revive them, which made him enthusiastic about this project.
“How many rotten parts do you plan to cut off?”
“All the unprofitable brands will be removed and sold to reduce debt before proceeding with the acquisition. The acquisition cost is estimated at $40–50 billion. How much would FinTech Bank like to cover? If desired, you can take more than half.”
FinTech Bank had already spent significant funds acquiring CITI Group.
Yet I could confidently propose using over $20 billion for this acquisition.
Most of the funds previously held by SAVE Investment Bank had been transferred to FinTech Bank.
In reality, the money coming from FinTech Bank was essentially my own.
All amounts, excluding Warren Buffett’s investment, came from my pocket.
“Berkshire will invest $5 billion. The remaining amount will be split evenly between Taewoo Group and FinTech Bank.”
“With $50 billion, we can acquire roughly 75% of the shares. Berkshire will receive 8%, and Taewoo Group and FinTech Bank will split the remaining 67% equally.”
“And who will own the rest of the shares?”
“Creditors will hold 10%, and the United Auto Workers about 10%. The rest is spread across various parties.”
Our share was 67%.
Enough to run the company as I wished, without interference.
“The government will assist with plant relocations, so consider selling high-cost plants and moving them to lower-cost areas.”
“Leave that to me. We’re also receiving support for automation equipment. We plan to install some automation technology developed by Amazon in our plants.”
“With automation in place, labor costs will decrease significantly.”
“Which is why we plan to slightly increase the proportion of workforce restructuring.”
Dimon was diligently cutting away the rotten parts.
The day his trimming was complete would be the day we signed the contract.
And it would also be the day GM finally came under the Taewoo Group’s control.
