From legendary short seller to god of American capital

Chapter 214 Trying to do two things at once, but ending up with a rabbit!

Chapter 214 Trying to do two things at once, but ending up with Bugs Bunny.

Tuesday was April 12th, and Larry brought Mr. Dunbar to the Broadway Hotel where Mr. Eastman was staying.

Before convincing Eastman to cooperate with his roadshow, Larry's most important task was to secure his $50 investment.

After all, he was originally going to invest in Kodak. Even if the fund fell through, Larry would still beg and plead to put money into the company, because Kodak was a future super-performing stock.

The longer the night goes on, the more likely things will go wrong; the longer the night goes on, the more likely things will go wrong. It's better to finalize things sooner rather than later.

Once you've secured your share, things become much easier to discuss.

Upon arriving at the hotel reception, Larry used the hotel's internal phone to inform Eastman that he had something to discuss with him.

Soon after, Mr. Eastman rushed down from his hotel room. In his haste, he had only hung his coat on his arm, not put it on.

"Good morning, Mr. Livingston!" Mr. Eastman's tone sounded cheerful, but his eyes looked anxious as he looked at Larry, fearing that the other party might say something bad.

Larry simply smiled, invited Mr. Eastman to sit at a quiet tea table in the hotel lobby, and then slowly began to speak.

"Aren't you in a hurry to raise funds? That's why I'm coming to your door today to raise the $50 I promised."

Mr. Eastman frowned, a look of surprise on his face, and said, "Mr. Livingston... you're investing today? That's... too fast! I thought you'd have to wait a while."

Larry tapped his fingers on his knee and chuckled, "Actually, I also represent two other investment families' investment firms, who have entrusted me with screening and investing in high-level projects. Your project is so excellent that the reason I dared to agree to the initial $50 is because I have authorization from two investment firms. In addition, I also intend to invest some myself."

After hearing this, Eastman looked Larry over carefully again, nodded, and said...

"No wonder you're so young and have Mr. Morgan's business card; it turns out you also handle project screening for other important investment companies. May I ask which two companies have entrusted you with their investments?"

Larry held up two fingers and said seriously, "One is New England United Capital Investment Company. This company specializes in manufacturing investments in Boston and has invested in many large projects in Boston. It is also an important investment channel for the Boston conglomerate!"

Upon hearing Larry's words, Eastman's expression instantly turned serious.

Clearly, the keywords New England United Capital and the Boston Consortium immediately made him realize the powerful background behind Larry.

Larry held up his second finger and continued, "The second one is Freeport Cornerstone Holdings. This company invests in a wide variety of retail businesses, and in one of its projects, it achieved a fivefold return on investment in just one year. Its capital and performance are both proven."

"Freeport Cornerstone Holdings? This...this must be a very well-capitalized company!"

Eastman's face showed longing and respect.

Larry smiled faintly and lowered his voice to Eastman, saying, "...You have to understand, there are actually many deeply entrenched interest groups on the East Coast. When they want to invest, they often form a matrix, so everyone can make money!"

Eastman quickly nodded in agreement. "You're right, Mr. Livingston... Oh, it's truly remarkable that you've secured investment mandates from two companies!"

During Monday's negotiations, Eastman was somewhat disappointed and even looked down on Mr. Porter and Larry because Mr. Porter's agreement was not very conciliatory.

But upon hearing today that Larry was representing two well-established investment conglomerates with successful investment experience, Eastman was surprised, and his attitude towards Larry became respectful once again.

Larry waved his hand dismissively and said, "It's nothing. I think the potential of your project will meet the return expectations of both investment companies."

"Eastman Kodak will absolutely not let either company down!" Mr. Eastman straightened his back and solemnly declared.

After stating his position, Eastman continued, "...How much money do each of them plan to invest?"

"About $25 for each company," Larry said solemnly to Eastman, but in his mind he was calculating that he only had about $13 to $14 in his two companies' accounts, so he would have to transfer more money from his bank account, which was quite troublesome...

"Oh, that makes 50! Great, that's fantastic!"

Eastman's face lit up with delight, but after a moment, he raised an eyebrow and asked,

"Would they be willing to invest a little more? To be honest, I think Mr. Porter's fundraising might be a bit delayed, so it would be great if you could invest earlier..."

Larry smiled and shook his head slightly. "We still have the money, and we can invest more. But we won't just invest in Kodak alone, since there are limits on investing in startups. These two investment firms value the investment effect across the entire industry chain. If your company has any worthwhile companies upstream or downstream, these two firms can consider investing in them simultaneously."

After speaking, Larry stared intently at Eastman, awaiting his reply.

Last night, Larry recalled all the events involving Eastman at the hotel, and even focused on analyzing Eastman's personality.

Eastman is the kind of person who is very meticulous and considers everything very thoroughly. It's impossible that he doesn't understand the importance of controlling the upstream and downstream supply chains. This impulse to control the upstream and downstream supply chains is something that every visionary entrepreneur has.

Henry Ford was like that, and so was Eastman.

Larry came today also to probe whether the other party had similar investment plans.

Sure enough, Eastman pondered for a moment, then said carefully,

"There are indeed companies worth investing in. However, I lack the resources to do so, and I'm worried that a competitor might acquire the company prematurely, which would be very detrimental to my company. If the Boston consortium could acquire this company, it would lay a solid foundation for our future cooperation..."

Larry remained perfectly calm, showing no sign of his inner excitement, and casually asked a question.

Which company are you referring to?

Eastman hesitated for a few seconds, then said, "Bausch & Lomb! It's a precision optical instrument company that produces microscopes, eyeglasses, and telescopes. Founded by two German immigrants, this company is now our lens supplier. I believe their technological expertise in optics is currently the best in the entire United States."

Bausch & Lomb!! Acquiring Bausch & Lomb?!

Upon hearing this name, Larry was startled. In his previous life, he only knew that this company produced contact lenses, but he did not expect that it was also the most important optical lens provider in the United States at this time.

Should we acquire this company?

How much money would that cost?

Larry never expected that his attempt to do both things at once would result in him accidentally encountering Bugs Bunny.

However, despite being inwardly shocked, Larry wore a disdainful expression and said...

"Is this company doing well? I remember it's just a company that sells eyeglass lenses. How much profit can it make? And how much is it worth acquiring?"

Eastman's face showed a solemn expression.

"Don't underestimate this company. Although their projects may not seem impressive, lens grinding is a very profitable industry. They currently have an annual net profit of around $15. In addition, they obtained a patent license from Zeiss in Germany as early as 10 years ago, and our company's technical capabilities are also very strong."

Larry frowned, shook his head, and said...

"That won't do! A company with such good qualifications, generating $15 in net profit every year, either the founder is unwilling to sell his shares, or the price is extremely high. Acquiring such a company is too uneconomical."

As Larry spoke, he kept a close eye on Eastman's expression.

Subconsciously, Larry felt that Eastman wouldn't have mentioned "Bausch & Lomb" to him for no reason. If he dared to mention the name, he must not be afraid of someone else acquiring it first.

Even when he suggested that the Boston consortium acquire Bausch & Lomb, it proved that he had long harbored ambitions for Bausch & Lomb!

Sure enough, a smile slowly appeared on Eastman's face, and even his gaze, which had been very sharp due to his eye disease, became truly sharp.

Eastman looked at Larry and said something.

"For the past two years, I have been secretly accumulating Bausch & Lomb shares on the over-the-counter market, and now I hold 19.8% of them. But I know that if I make a rash offer to acquire them, they will definitely not sell. Unless I get the revenue from the Boston consortium, I am not confident that I can acquire them in one go."

"How much would that cost? Like you said, a one-off acquisition, a sure thing?" Larry asked.

"It will probably take $120 million, or even $180 million! I think this will convince minority shareholders to give up their shares, and the major shareholders will no longer have a controlling stake!" Eastman's expression was somewhat sinister.

Larry thought for a few seconds, then nodded to Eastman and said, "I'll figure something out, but what's in it for me?"

Eastman turned to him and said solemnly, "Didn't you also want to invest in Kodak? If you can help me acquire Bausch & Lomb, I'll give you 5% of the shares, for free!"

(End of this chapter)