NationStates Jolt Archive

[OOC: After some consideration, I've decided to merge the Wilmington Shipyard Corporation (http://forums.jolt.co.uk/showthread.php?t=322518) and the Portland Iron Works (http://forums2.jolt.co.uk/showthread.php?t=345001) under the name Portland Iron Works. This thread will be an explanation of how this merger came to be.]

Commodore Jamie Wilson was hunched over in his desk. It was almost 7 p.m. and he had barely budged from his desk since the meeting three hours ago.

The Wilmington Shipyard Corporation had just rolled off the Diplomacy, a new design for an executive yacht that Wilson and the WSC's board of directors hoped would rejuvenate a struggling company. He figured that adding a new ship to their offerings might bring more customers.

However, budget projections were gloomy. The company lost money after a brief boost following an aborted initial public offering. The bottom line looked better than the reality since the company shifted some of its production to help the Royal Shipyards of Isselmere-Nieland and the Nicksia Shipyards subsidiary of the RSIN Corporation ease the crunch of a major order. But Wilson knew the company was in trouble.

His phone rang.

"Wilson."

His wife was on the other end. "Honey, when are you coming home?"

"I'll be home in half an hour, Anne."

"What's wrong?"

Wilson thought for a moment. In 32 years of marriage, even with long deployments away from home and occasional long hours at work in his office, his wife learned to pick up on the slightest non-verbal or verbal cues Wilson gave off. She knew he was troubled.

"We just had a meeting where I gave the budget projections," Jamie said. "Except for our helping out the RSIN Corp, we're on the verge of financial ruin."

"Oh, honey," Anne said. "Let's talk things over at dinner. I'll make that meatloaf you love so much."

Wilson decided he'd try to be a good sport about it, especially since Anne's meatloaf was the best he'd ever tasted. He agreed and pulled himself out of his chair.

"I'm on the way. I love you, sweetie."

"I love you too, Jamie."

Wilson's head was running through all kinds of options as he walked to his car. He thought wistfully about Commodore Barbara Tucker, his one time paramour who was running the successful Portland Iron Works.

Maybe it'd be good for us to latch on to them, he thought as he sat down in the driver's seat of his car. It can't hurt.

"In financial news, bleak fourth quarter forecasts could see the Wilmington Shipyard Corporation file for bankruptcy," the radio report began.

Commodore Barbara Tucker (ISN-Ret.) bolted up in her recliner. She had just taken the first day off she'd had in a while and was about to settle into a nap.

News of her former boyfriend's company in financial dire straits made her fish out her cell phone from her purse. She didn't pay attention to the rest of the radio report, but she wasn't interested in that anyway. She had a phone call to make.

"Custer," the voice on the other end replied.

"Bill, this is Barbie," Tucker said. Just about everyone in the company or related to it called her by her given name, but PIW board chairman William E. Custer and Tucker were close friends and often spent time together away from the office.

"How are you? How's vacation?"

"Not bad," Tucker began. "Listen, I need to talk to you about something."

Custer's eyes perked up.

"Listen, Barbie, you're on vacation. We can discuss business when you get back. You should be focusing on your granddaughter's recital."

"This is very important Bill," Tucker said. "Have you heard about Wilmington?"

"Now that you mention it, yes I have," Custer said. "They're in some trouble, aren't they?"

"Yes, they are."

"What do you think we should do?"

"I'm thinking we should make a move to acquire them. We could offer their ships on our storefront and that would allow us to have more shipyards available to build more ships."

Custer nodded. The major hiring spree PIW did could only go so far toward accomodating large orders such as the one just placed by Sdaeriji. He knew they needed more shipyards as well as more people. He also knew that 1,600 of WSC's shipyard workers were being laid off because of lack of activity. He figured this would give them jobs again and it would beneft PIW.

"I'll tell you what," Custer said. "I'll make the contact with WSC first. I'll tell them we're interested in a merger and I'll make the offer for their stock. If they're willing to open the talks, I'll refer them to you when you get back from vacation."

"Sounds like a plan, Bill."

"Thanks Barbie. Oh, and good luck with Melissa's recital."

"Thanks, Bill. Are you going to be there?"

"If traffic isn't a mess."

"Good. Hope to see you there."

Tucker hung up her phone. She had scenarios playing out in her head as the machinations for the merger started to get put into place. She knew Custer well enough to trust that he would most likely be able to make the initial contact a positive one. She also knew Custer's mind was already working on his approach to Wilson and WSC board chairman Thomas Dio about the merger.

She picked up a copy of the Woodstock Daily Mail to read the financial section and fetched herself a cup of coffee. She noted that WSC shares lost 38 cents in heavy trading yesterday.

This should work, Tucker thought. It'd be right for both of us.

Thomas Dio was writing some notes for a speech he was preparing to give the company at his state of the corporation address. He was wrestling with the financials and realizing that the only way he could spin the numbers to look positive was to emphasize the construction on the RSIN Corp ships.

Just then, the phone rang.

"Thomas Dio."

"Hi, Tom. It's Bill Custer of the Portland Iron Works."

"Hi Bill," Dio said with a sigh of relief. At least it wasn't someone that that Loni transferred to him by mistake. She was already in trouble up to her eyeballs for forgetting to hand him paperwork to renew the company's lease. The two men exchanged pleasantries and chit chat for about a minute and a half.

"Nice job on designing the Diplomacy. Looks like a fine ship," Custer said.

"Thank you. We really worked hard on that ship."

"It shows. Listen, I've got a proposition for you."

"Oh?"

"I've seen the reports in the paper about the company's troubles. I propose that we buy you out and you'll all be able to keep jobs with the Portland Iron Works and we'll be able to expand to use your shipyards."

Dio took a breath. He knew that the board didn't take kindly to acquisition offers. But he also knew the company was in real financial trouble and he had to do what he had to do.

"I'm willing to listen to your offer."

"I'm willing to put up $23 billion to acquire you and allow everyone in the company who wants jobs at the Portland Iron Works to earn the same salary they make now," Custer said. "You don't have to lay off another worker and we get the shipyards and the personnel we need to handle the large orders."

"But what about our ships," Dio asked. He hated to see the newly-minted Diplomacy-class or the well-established Pasteur-class go the way of the wooden warship.

"We would offer them at the Iron Works," Custer said. "We love the Pasteur as much as you do. That's why we want to offer it here at the PIW."

Dio thought for a minute.

"I'll take your proposal to the board. We have a meeting before my state of the corporation address tonight," Dio said.

"It's tonight? What timing!"

"I know, isn't it?"

"Very well. Let me know what the board thinks."

"Will do. Nice talking to you, Bill."

"Nice talking to you too, Tom."

Both men hung up their phones. Custer figured the WSC board would balk at $23 billion and negotiate for a higher rate. He knew his board would be more than willing to go higher. They really needed those shipyards and the new employees the merger would provide. If only the commission in charge of mergers like this would approve such a deal.

Dio wasn't sure what to think. Despite Custer's assurances, he was worried about being out of a job.

[OOC: Is $23 billion U.S. a realistic price for the Wilmington Shipyard Corp? If not, I can negotiate it upwards.]

[OOC: If Wilmington Shipyard Corporation has extensive facilites, shipyards, and/or drydocks, the price would be much higher. Factoring the bankrupcy of the company, I would say it might be worth up to $100 billion, but the offer will most likely not surpass $70 billion.]

[OOC: If Wilmington Shipyard Corporation has extensive facilites, shipyards, and/or drydocks, the price would be much higher. Factoring the bankrupcy of the company, I would say it might be worth up to $100 billion, but the offer will most likely not surpass $70 billion.]

[OOC: Thanks! I have limited knowledge of how much a company like that would cost, so I put that figure in. I'll RP the negotiations now with that in mind. :)]

[OOC: The exchange rate for Sarzonian dollars to U.S. dollars is roughly two to one. That's how I went from $23 billion in one post to $50 billion in this one.]

Dio walked into the board meeting with the offer in hand. He figured that the board of directors would make a quick decision and the WSC could be on their way to the merger.

"Ladies and gentlemen, we have received a merger offer from the Portland Iron Works," Dio began. The assembled members started murmuring among themselves until Dio banged the gavel to silence the discussion.

"How much are they offering," board member Teresa Cox asked.

"Fifty billion Sarzonian dollars," Dio began. He opened his mouth to speak, but was quickly interrupted.

"Only $50 billion? That's a damn insult," Cox snapped. "I'd rather fold the company than accept that price!"

"Be careful what you wish for," board vice chairman Andrew Stephens retorted. "We may get it if we don't improve in a hurry."

"We're not selling the company for any $50 billion, that's for damn sure," board treasurer Monique Sills said. "Tell them there's no sale."

"Wait a minute," Stephens said, seeing the company inexorably slip from the hands of the collection of board members assembled in the room. "We don't have to accept this offer, but if they're as serious as Tom's saying, we can certainly negotiate this. Why don't we propose a figure of $250 billion and see where that leads us?"

"I can give that a try," Dio said. "I'll be right back."

Dio grabbed his cell phone from his suit pocket and hit the last number feature. It dialed Custer's direct line."

"Tom?"

"Yes, Bill."

"What do you think?"

"Fifty billion dollars is much too low. We propose that we sell to you for $250 billion, plus all WSC employees are guaranteed to make at least lateral moves into PIW.

Custer sighed. "I don't know, Tom. I'll have to think about it."

Custer put the phone on mute, turned and told the economic advisor who had been tapped to deal with the negotations.

"They're saying $250 billion."

"That's too high, but they're right that $50 billion is too low. Offer to increase to $100 billion, but be ready to accept anything from $150 billion to $175 billion. The board won't go any higher than $175 billion."

"Has the board already discussed it?"

"They're going to delegate it to you to make the deal and they'll likely sign anything you get that isn't too exorbidant."

"All right then." Custer turned back to his muted phone and unmuted it.

"That amount is too high," Custer said. "I propose $100 billion."

Now it was Dio's turn to sigh. "Hold on." He hit mute on his phone.

"They're offering $100 billion now."

"Too low," Sills said. "They need to offer $200 billion or it's no dice."

"We're not exactly in position to dictate terms here," Dio reminded Sills. "I'll go to $180 billion."

"No lower than $150 billion," Sills said. The rumblings around the table all agreed with her.

"All right," Dio said. He unmuted the phone and said, "we'll offer to sell for $180 billion."

Custer's mind went whirring. They were still far apart as far as the actual figures went, but they were much closer to his ceiling.

"That's too high. We'll offer $140 billion."

"Too low," Dio said. "I'll accept $175 billion."

"How about $160 billion?"

"If you make that $170 billion, you've got a deal."

"I won't be able to do $170 billion, but I'll do $165 billion."

"Hold on." Dio muted the phone and turned to the board.

I hope they don't kill the deal on account of $5 billion, Custer thought for a moment. If they insist on $170, I'll take it. I hope they give us some wiggle room here.

"They've just offered $165 billion."

"That's okay," Sills said, sighing heavily. "But let's see if we can make it $170 billion." The rest of the board quickly agreed. Dio unmuted the phone.

"Listen, I don't think we're going to agree to that," he said. "We don't think $165 billion is a fair price."

Crap, Custer thought. Please say $170 billion.

"We'll either accept $170 billion or there's no deal."

Custer sighed heavily.

"Oh, all right. We'll buy for $170 billion."

Both men spent the rest of the next hour and a half nailing down contract particulars and took the deal to their boards. Both boards approved the measure and they sent the paperwork on to the commission dealing with mergers.

Two weeks later, the commission voted 4-1 to approve it and the merger became official.

"Today is a great new day in the history of the Portland Iron Works," Tucker said in a speech to the company. "Today, we have fully integrated the Wilmington Shipyard Corporation into our family and we will be able to expand the offerings we will make to our customers."

"Today also marks a new chapter for us," Wilson said in a speech to his company just before the official turnover. "We have joined a dynamic company that has made tremendous strides for Sarzonia in a short time. We look forward to many years of success."

[OOC: $170 billion Sarzonian is equivalent to $81.6 billion U.S.]