The last month of 2014 arrived.
Oil prices continued to fall at an alarming rate. Unlike us, who had some room for maneuver, the United States was starting to become anxious.
It reached the point where Ambassador Kang Jun-yong of the U.S. came to see me, appearing quite urgent.
"I'm sorry if I'm disturbing you, Chairman Kim, who is always so busy."
"Not at all. If I can meet Ambassador Kang, I'll make time no matter how tight my schedule is."
Though Korean, Kang Jun-yong was an ambassador affiliated with the U.S. government. Perhaps that was why he gave off a different vibe from ordinary Koreans.
"Judging by your coming here and even skipping dinner, I assume you have something urgent to say."
"The White House contacted me. They said all preparations are complete and asked us to move forward."
"Preparations are already complete? We had agreed to move early next year."
"Please understand the circumstances. Small and medium shale companies are collapsing by dozens every day. Moreover, the entire oil-related business has begun to collapse."
Ambassador Kang's acting was fairly convincing. He even had tears welling up as he conveyed the crisis of the U.S. shale industry.
But if it were truly a crisis, the White House itself would have taken direct action, not just sent the ambassador.
"We will finalize the consortium as quickly as possible."
"I hope the acquisition negotiations start within this year. If that's impossible, could Taewoo Group take the initiative and move first?"
We couldn't just stall for time.
If the negotiation target were simply an American oil company, it wouldn't be a big deal. But the real counterpart was the U.S. government, so we had to show at least some goodwill in advance.
"It's not difficult for Taewoo Group to move first. But it only works if the American oil companies are ready to negotiate with us."
"Don't worry about that. We've received word from the Hess board that they are ready to negotiate. We can start negotiations as soon as tomorrow."
"Then I'll book a plane ticket to the U.S. within this week."
"If, by chance, there are no available tickets, please let me know. I'll arrange for a private jet or even use U.S. Forces Korea aircraft to safely bring you to the U.S."
This matter was important for Ambassador Kang Jun-yong's career. If the oil company acquisition went smoothly, he could rise beyond U.S. Ambassador to Korea and even enter the White House, so he kept pleading earnestly.
"We'll prepare as quickly as possible and head to the U.S. Also, since Taewoo Group owns a private jet, we won't need the U.S. military's help."
"Then I'll inform the White House accordingly. And if Hess demands excessive conditions, contact me immediately. I'll make sure they listen—even if I have to wield a bat."
Ambassador Kang even mimed swinging a baseball bat. He left after repeatedly urging us to proceed swiftly with the negotiations.
"Call President Han."
As soon as Ambassador Kang left, I called for President Han. He came inside in less than ten seconds, as if waiting.
"Ambassador Kang looked very urgent. He asked us to expedite the negotiations since the American oil companies are ready."
"It seems the whole Financial Tower has combined efforts to aggressively short-sell. Hess's stock continues to fall, dropping more than 55% compared to six months ago."
Hess did not suggest negotiations lightly. They were clearly frightened by the unprecedented massive volume of short selling.
Those leading the charge were President Han and the financial firms in the Financial Tower.
"Thanks to you, things will proceed smoothly. You've managed the Financial Tower well."
"The financial firms moved because it was profitable. Since they could make high returns through short selling, they acted on their own without needing much control."
"Indeed, with several financial firms involved, they attacked in ways we never expected."
"Are they not the hyenas of Wall Street for nothing? They'll even chew you to the bone. Hess may have deep history and tradition, but can it compare to Wall Street?"
Once again, I confirmed Wall Street's combat prowess. Sometimes Wall Street seemed like a well-fed pig, but when faced with weak prey, it descended like a hyena starved for days.
"We need to form the consortium soon. That way, all negotiations can be completed by early next year."
"In fact, we can form it immediately. Would you be okay with advancing the schedule?"
"Advancing the schedule won't change the result, so it doesn't matter."
"Well, while you're negotiating in the U.S., we'll get the consortium formed."
"That'd also be a good excuse to stop short selling. If Taewoo Securities leads the formation of an oil company acquisition consortium, how could short selling continue?"
Profiting from short selling would be over by the end of this year. Starting next year, oil prices would stabilize and begin to rise.
"If we acquire the oil companies, the forces practicing short selling will vanish. Other oil companies might still be attacked, but no financial firms will target us, right?"
"Financial firms in the Financial Tower, yes, but there could still be reckless firms outside our reach."
"Are there really any reckless financial firms left?"
The likelihood was low. Taewoo Group's financial strength was well-known worldwide.
"Shall we pretend to be a little weak? If we show some vulnerability, a few financial firms might try to attack."
"Is there really a need to be attacked?"
"We need to set an example of what happens when someone messes with Taewoo Group. If no attack comes, then we can just pretend it never happened and move on."
"Understood. Then I'll spread information on Wall Street that most of the funds have been used for the oil company acquisition."
Will there be any fish foolish enough to bite the bait? I hoped at least one reckless fish would take the bait.
***
I arrived in New York, where Hess's headquarters is located.
Honestly, I wanted to summon the Hess board to Korea, but due to the agreement with the U.S. government, I avoided any power plays and traveled to the U.S. Instead. These were people about to have their company snatched at a low price, so I wanted to show proper respect.
That's why I entered the boardroom with utmost courtesy.
"Nice to meet you. I am Kim Min-jae of Taewoo Group. It is an honor to attend the board meeting of Hess, a company renowned for its history and tradition."
"..."
A moment of silence lingered.
They seemed at a loss for words at the arrival of someone who could become the new owner of Hess. Fortunately, one of Hess's representative directors quickly recovered and welcomed me.
"We are honored to meet Chairman Kim Min-jae, who is currently the most famous."
"As the consortium is not yet finalized, I was planning to visit in the first half of next year, but the U.S. government wanted to start negotiations earlier, so I moved up the schedule. I apologize if this caused any disrespect."
"Not at all. We requested the government to proceed with negotiations as soon as possible."
I made it clear from the start that this negotiation was not originally my idea. That way, I could claim leadership and prevent any later complaints.
"Actually, there isn't much left to negotiate. I've received the terms from the U.S. government. All shares will be acquired at the stock price at the time of acquisition, and Taewoo Group will take responsibility for all the debts."
"That's accurate. And as an additional condition, we would like to request employment succession. Of course, this is negotiable."
Employment succession was negotiable? That basically meant they could still fire some employees. It seemed the board wanted to appear like they were trying, so they raised the issue.
"We promise employment succession for everyone except executives. Of course, a very small number of employees who pose legal or company risks may be dismissed. But we guarantee that over 90% of employment will be retained."
"That condition is satisfactory."
The acquisition negotiations were progressing in a very warm and congenial atmosphere. But someone who didn't like that mood appeared.
A red-bearded man, who had kept his mouth tightly shut since I arrived, finally spoke in a thick voice.
"Honestly, I don't understand. Why is Taewoo Group showing interest in Hess?"
"Taewoo Group has long had a strong interest in oil-related businesses and has invested heavily in Texas shale gas development."
"Shale gas is one thing, but offshore oil exploration is entirely different, isn't it?"
"I believe they are not very different."
"I understand that Taewoo Motors is focusing on environmentally friendly electric vehicle development. Why would an eco-friendly company show interest in an oil company?"
I had been expecting that question.
Taewoo Motors was running an eco-friendly policy through electric vehicles. But the oil business was the exact opposite industry, so Taewoo Group's interest in oil might seem incongruous.
"Environmentally friendly businesses like electric vehicles ultimately require strong backing from the oil industry. To manufacture electric vehicles needs massive amounts of energy, and that energy comes from oil in the end."
"Is that why you want to acquire Hess?"
I glanced at the man's face for a moment and caught the worries behind his expression through the detailed information.
"If you're worried that Taewoo Group will only use Hess, you don't have to be. We plan to invest so all ongoing projects can proceed properly, and even support projects that had been abandoned."
"So the South American oil field projects will continue?"
"Of course. We have also prepared success incentives specifically for the employees struggling with oil exploration."
His worry was about the collapse of Hess. He was uneasy whether Taewoo Group was the best choice for Hess's survival and needed assurance that the situation would improve with Taewoo Group as the parent company.
"Can you add the points you just mentioned to the acquisition contract?"
"Of course. Whether the low oil price era lasts five or ten years doesn't matter; we will clearly state that we will proceed with everything from oil exploration to development."
"...Then I will vote in favor of the sale."
No one remained opposed to the sale of Hess.
However, the negotiations were not yet over. While they agreed to the sale, some individuals wanted to secure a larger personal share.
"Is it possible to specify severance pay in the contract?"
"Wouldn't it be sufficient to acquire the shares at a slight premium over the current holdings? The U.S. government said shares should be acquired at market price only."
That was a warning not to be greedy. The U.S. government was closely watching these negotiations. If the board members' greed caused the deal to fail, the board would be held fully responsible.
Therefore, I had no intention of indulging their greed. If they were not satisfied with a modest premium, I was ready to stand up and leave immediately.
"Tsk, tsk. What a state Hess is in... yet you're only thinking of severance pay. Get a grip. I will not ask for any premium. Use that money for employee bonuses."
"...Then we shall proceed with the contract, including a partial premium."
The situation resolved itself naturally.
We had promised the acquisition contract in broad terms, and now only the technical details needed to be coordinated by the staff.