Read Online The Helsinki Pact by Alex Cugia - Free Book Online

out
neatly.
    “Good morning, Mr Fischer. Where
are we on the Morgan Grenfell acquisition process? Any major
changes since the last contract revision?”
    “I’ve summarised them here.” He
handed a set of papers to Herren. “The two main changes relate to
the guaranteed bonus payments, which have been reduced
substantially, and the request that the CEO of Morgan Grenfell, Mr
Ryan, take a board seat here in Frankfurt.”
    Stephan paused to watch Herren’s
reaction to this apparent provocation. Since its founding in 1870
Deutsche Bank had never once admitted a foreigner to its board. The
idea was unthinkable—Deutsche Bank was far more than simply a
commercial bank but was intimately enmeshed with German industry,
through mutual and interlocking directorships, and also with the
German political establishment. No important economic decision was
ever taken by the government without at least informal prior
consultation with the bank, typically with the CEO
himself.
    Herren looked unperturbed. “I see
that Mr Ryan has followed my suggestion. Giving Ryan a seat will
reassure Morgan Grenfell employees that this is an integration, not
a takeover. And if Morgan doesn’t get the results we expect they
won’t be able to put the blame on us.”
    Herren’s cunning and skill in
reaching his objectives again impressed Stephan. Had Herren
proposed bringing Ryan on to the board the other members would
almost certainly have blocked it. But by having Ryan present it as
a fundamental point in the acquisition negotiations he ensured that
the proposal would be accepted, albeit reluctantly, by his
co-directors.
    Herren glanced quickly over the
papers. “Yes, everything seems to be here. If I have any questions
I’ll call you. We need to complete within a week but I feel that Mr
Ryan is ready to sign.” he said, with the calm confidence which
could still surprise Stephan. The competing bid from the French
Societé Générale didn’t seem to worry him in the least.
    “But there’s another matter I
want to tell you about, a new project I want you to start working
on immediately. It’s extremely confidential. Extremely
confidential.” He paused and looked intently at Stephan. “We are
about to launch our first Euroloan programme for the Soviet Union.
Fifteen billion Deutsche Marks.”
    “Fifteen billion!” Stephan could
hardly contain his amazement. “The Soviet Union?”
    “Exactly.”
    “Have they done deals of this
kind before? Any documentation I can go through to find ...
”
    “There have been some small
issues, in the millions, through some agency but this will be their
first time accessing Western capital markets at anything like this
level. That’s what makes this project so interesting. You’ll learn
a lot from it, I’m sure of that.” The board meeting was about to
start and Herren got up to leave.
    “But do you think the markets
would take that kind of credit without some form of guarantee?”
Stephan tried his best to sound positive as he rose and walked to
the door. He knew from experience that Herren hated to be
contradicted. But the idea made no sense whatsoever unless some
entity like the World Bank or the IFC guaranteed the loan. The risk
of a country like the USSR defaulting on the loan was too high to
attract investors, whatever the interest rate put on the
paper.
    “You’re right. Soviet paper would
be unsellable without some guarantee. That’s why the Federal
Republic of West Germany has agreed to provide that
reassurance.”
    Herren was looking at him calmly,
the hint of a smile about to break out, enjoying Stephan’s
astonishment and discomfiture.
    “You will be working on the
documentation with senior members of the Ministry of Finance. The
first meeting is scheduled for tomorrow at nine. You should …
”
    The phone ringing interrupted
him.
    “We’ll speak further after the
board meeting.” He waved Stephan out of the office, turning on the
speaker phone. Stephan heard “The Chancellor is