[Chapter 520: Terrifying Investnts]
Australia was a very interesting place, rich in resources with a sparse population. Forget industrial projects; the people there weren't even interested in mining.
Australia had plenty of mineral resources, but the location was sowhat awkward. To put it bluntly, if it wasn't for the unexpected developnt pace of Asia, the minerals here would be of little use.
Of course, William White's investnt in Australia was not just about the minerals. In reality, the bubble economy had burst, and the steel industry in Japan was pretty much done for.
"What? Investing in minerals? Doesn't Australia have any oil?"
"Sir, he invests in everything -- gold, diamonds, copper, and iron ore. The most important would be iron, as he has a huge amount of land acquired."
"Tsk, what's he really planning to invest in, playing around like a child?"
"Sir, not counting bank loans, his investnts during this ti have already exceeded two billion dollars."
"That much? Looks like he has decided to invest in real industries. But iron ore? That commodity's price is so low. Is it even worth it?"
...
William White didn't know what they were muttering about. If he did, he would certainly have thrown so sarcasm back at them. They didn't know anything; the transportation conditions in Australia were much better than in Brazil.
Alright, if this iron ore needed to be shipped to the United States, that would indeed not be worth it. In fact, the U.S. didn't really need iron ore -- the Great Lakes region had the world's largest iron mines.
So, as they say, stick to your strengths. What you at rrill are best at is hostile takeovers. As for everything else, save so effort.
William White made a fortune in Japan, and the whole world knew it. Oddly enough, the Japanese didn't dislike him; instead, they had so gnashing of teeth against Goldman Sachs and rrill Lynch.
Now, this guy was investing wildly, no less than the past two years in Japan. So said that luck had turned, while others took a more skeptical view.
Luck might be turning for Japan, but not for William White. In these years, when has he ever hesitated to spend? This ti, he just exaggerated it a little bit.
"Sir, we've bought up the places you were interested in. Should we form an exploration team now?"
"Hmm, sure, not too large though. We don't have experience in this area. Let a headhunting firm supply the information. We need a decent CEO."
"Got it, sir. This ti it's causing quite a stir; many mining companies are expressing their dissatisfaction."
"Dissatisfaction? Give a break! Isn't it just BHP and Rio Tinto? Keep an eye on their stocks; if the opportunity arises, we can short-sell. Oh, and check with rrill if they have any confidence in an overall acquisition."
"Sure, I'll ask. Ha, I bet they'll be scared stiff."
"This is the world of capital; whoever has more money is the boss, and it's pretty clear that I have more than they do."
Filson was very certain that the Boss was planning to ss with them. Of course, if there was an opportunity, the Boss wouldn't mind picking up a bargain.
Filson wasn't sure what the strategies of these two companies were, but William White was quite clear. Aren't these just the future BHP? Although right now, they still seed pretty ordinary.
The price of iron ore was very low now; those two companies considered themselves resource giants, but their most plentiful asset was indeed iron ore.
...
William White's presumption imdiately infuriated those two Australian companies. Well, half of them were scared too. They instinctively rejected foreign capital, never expecting this Arican cowboy to be so formidable.
What they didn't realize was that William White wasn't just talking nonsense. The current price of iron ore was essentially at historical lows. Like oil companies, buying now was undoubtedly the smartest move.
Of course, acquiring such scale companies was no small feat. It surely wouldn't happen without a year or two of back-and-forth negotiations.
Even if others agreed, it still required the approval of the Australian governnt. The heaps of paperwork would indeed be quite the hassle.
The richest man intended to be quite unreasonable, and in no ti, several larger companies beca cautious, especially Rio Tinto.
Everyone was in the resource ga, and they obviously saw the problem. The exchanges between BHP and Billiton had been going on for quite so ti. To compete with Rio Tinto, these two planned to rge.
Now, here ca this annoying cowboy, aiming to take away the two of them. This blatant disregard for norms could only be Arican-style.
Rio Tinto was now worried about what if this guy still felt unsatisfied. It would be tough to resist him.
Funding?
They believed that this might be a problem for others, but for William White, no bank would refuse his loan application.
To be blunt, if he packaged up these three, they probably wouldn't even need to use any high-leverage buyout sches. The most likely scenario would be privatization, integrating the companies, and then re-packaging for an IPO.
...
"Whoa, are you sure this rger isn't a joke?" Upon hearing this news, the head of rrill couldn't help but swear.
"Sir, it seems like a spur-of-the-mont decision. His think tank just started contacting major banks."
"Hmm, is he out of money? He must have more assets than this, right?"
"Ahem, sir, he has two hundred tons of gold in London; using those as collateral, he can secure a massive amount of loans."
"That madman."
"Sir, should we recomnd the mining companies from the Great Lakes to him?"
"Haha, we can give it a shot; hopefully, it isn't too significant. But mainly, let's keep an eye on those two Australian companies. If it doesn't work out, can't we consider Rio Tinto? Leave that to us at rrill. He wasn't planning to negotiate seriously anyway."
"Tsk tsk, just to tease him a bit, and now he wants to acquire. I bet Rockefeller is feeling pretty grateful right about now."
No matter how the outside world viewed it, William White didn't care. As for whether it was impulsive, well, you can interpret that yourself.
No matter how dismal the iron ore market was, this kind of acquisition approached the ten billion level. If you added in Rio Tinto, it would definitely exceed 25 billion.
Such a massive investnt was hardly a result of impulse. However, he wasn't in a hurry. There was still at least five or six years before the iron ore market took off, so he could just wait.
Regardless of the truth, right now, no one dared to talk back. If soone said he didn't understand mining, he admitted it. Since you're so good, I'll just assimilate you.
*****
spatreon/Sayonara816.
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