Twisted Love and Money (38 page)

“Internal
politics?” Kenny asked, sounding like the voice of experience.

“Don’t worry as
the details of the successful bid and merger come through I will
manage comment within AF. In particular any comment about Janet and
I coming on board as individual directors. Everything will be
kosher from our end.”

In good spirits
they parted. Janet and Crawford went to get a breakfast down
Grafton Street prior to meeting their teams.

“See you all at
O’Byrne residence,” Crawford said cheerfully as they departed.

Kenny left John
at work, met his son for a coffee and then waited in the reading
room until Colm O’Donoghue and Dermot O’Rourke arrived.

Kenny led them
up into the building. He ushered them into a committee room. “We
won’t be disturbed here,” he said.

John looked up
from his papers and greeted both men.

“Let me chair
this meeting,” Kenny said, going to the phone and ordering
breakfast for the two newcomers and requesting the removal of
John’s tray.

“Get more tea
and coffee,” John suggested.

As they sat
Kenny observed his guests. “Well Gentlemen?” he asked.

“How are your
investigations into O’Byrne’s on behalf of the banks going?” Dermot
asked.

“Very
confidentially. John took me through the financial statements. The
bottom line seems to be breakeven on profits and a cash deficit if
as expected the AF business is lost,” Kenny said and added, “And
your report on the quality problems Dermot?”

“It provides a
strong case for the defence, but I have been unable to talk to the
key AF people.”

“Will Michael
O’Byrne find comfort in the report?” Kenny asked.

“Some, but I
expect he will still accept an offer to sell. I don’t think he will
fight, more likely he will demand my immediate resignation.”

“So we can move
on to discuss the merger come takeover?”

“Yes,” Colm
said.

“Colm,” Kenny
said, “We have met down the years at various business meetings and
on a number of IBEC committees. However you have not met John
here…”

“My future
Managing Director?” Colm said with a smile.

“I am familiar
with your company,” John offered.

“We are
proposing a takeover using Howlett Holdings as the vehicle and a
backdoor to a market quote. A complicated manoeuvre requiring lots
of Accounting Tax and Legal advice,” Kenny contributed.

“Which can come
from your company,” Colm O’Donoghue suggested.

“For a suitable
fee,” he added.

Kenny laughed.
He enjoyed all the intrigue.

Dermot looked
at Kenny for a moment. “Michael O’Byrne threatened to sack me,” he
said coldly.

“Heat of the
moment?” Kenny suggested.

“It releases me
from loyalty to the family I have served all my working life.”

“And?” Kenny
asked quizzically, he did not quite know what to make of O’Rourke,
but he realized he had to let Dermot explain his feelings.

Dermot laughed
and lost his intensity, spreading his hands.

“It is simple.
Michael O’Byrne is in a mood to sell at present.”

“That’s why we
are here,” Kenny agreed.

Kenny pursed
his lips.

“Let’s not get
over excited. No venture is without risk. We have a situation that
developed for no reason within our control, but we must now take
advantage. Everything is in place, just the final act and of making
the bid and everything should be as agreed. We need to do this
today.”

“Can you put
the deal together in time?” Colm asked. “It is very complex. You
are proposing a reverse takeover of a public company.”

“My firm is
well capable of handling a complex deal. As a former partner John
will confirm this.”

John nodded in
assurance.

“First to
reiterate,” O’Donoghue said. “I have an eighteen year old grandson.
When he gets to thirty I want him in as Managing Director. Even if
I drop dead in the meantime, I expect it nonetheless. On
honour.”

“On honour?”
Kenny asked, puzzled.

“On your word
of honour Mr. Kenny. Not that I’ll drop dead,” Colm said
stiffly.

“I’m
flattered,” Kenny said.

“Done,” he
added and shook Colm’s hand. “John understands the realities and he
will set a deal where you retain fifty percent plus of the equity
so I don’t see a problem.”

“I’m sure John
and I will get on famously,” Colm said, offering an olive branch
and John smiled happily.

“I wanted to
remain on as Chairman,” Colm added.

“You are too
old,” Dermot countered.

“Joint
Chairmen. Me and you Colm. The banks and debenture holders expect
me as joint Chairman,” Kenny explained.

“As long as I
am Chairman of the audit and remuneration committees,” Colm
countered.

“Done,” Kenny
agreed and they shook hands again.

“Who puts the
bell on the cat?” Colm asked.

“Let me take
you through the discussions that John and I have had with Crawford
and his assistant Janet Simmons. We have to play our cards with
care and you Colm must lead the negotiation for the
consortium.”

“Good,” Colm
replied confidently.

“You will need,
as they say in poker, to know when to call and when to raise. The
deal is based around sixty million as you know. That’s how John and
I have put the deal to the bankers and the debenture holders. Are
you comfortable?”

“Yes, I can
handle Michael O’Byrne.”

Chapter
Forty-one

Peter made his
way to the Library where he found his father nursing a glass of
brandy and reading some business papers.

“What ho! Dad?”
he threw out cheerfully.

“Peter, we
wondered what had happened to you. You were supposed to drop in to
the party at the Shelbourne last night, anyone who was anyone was
there.”

“Sorry Dad, I
got tied up. How are things?”

“Great news,
Dorothy got engaged.”

“Yes, mother
mentioned it on my way in. I can't believe it.”

“To a bloke in
the dress business. Jeremy. Seems to be loaded with cash. That’s
good news for us Son.”

“How so?”

“Well he should
take Dorothy off our hands. Once we get out of the AF business
we'll get going together as a team.”

“Great Dad. Any
news from Crawford?”

“Peter we have
been frantic, where’s your mobile phone?” Michael asked, sounding
angrier now that he had recovered from the surprise of seeing
Peter.

“Sorry, seem to
have mislaid it. My car was stolen.”

“Listen Peter
there have been dramatic developments on two fronts.”
“What?”

“Crawford has
brought forward our discussion to this afternoon. He is coming down
shortly and bringing Janet Simmons that consultant, you know, the
‘good-looker’. We’ll all meet before our dinner party starts.”

“What about the
figures we need?”

“I’ll get to
that. The other development is that O’Donoghue is back with a firm
offer around a merger. He says he has a consortium with the banks
and the debenture holders and if we are selling he must have an
offer to bid. Says he can match or better anything AF puts on the
table.”

“Are they
creditable?” Peter asked, wondering how this might upset the apple
cart.

“Yes, they have
Kenny, the Bank Examiner, as you know he is a senior partner in one
of the big Accounting firms. He has muscled in and is supporting
the O’Donoghue bid. They believe, depending on price, they can take
us over and build the business without AF as a customer.”

“Must be
dreaming.”

“No serious.
This is just what we needed Peter a second bidder. AF will have to
go higher.”

“Fine,” Peter
said, unsure.

“Stick with me
on this Peter. I need you to back me all the way.”
“You got it Dad.”

“I have asked
Dorothy to cover the Financials. Together the three of us are going
to negotiate this deal. Family only, as we are the
shareholders.”

“Good thinking
dad. What about Dermot’s quality report?”

“I spoke to
Dermot on the phone. I think he is very angry with me for
threatening the sack. However as far as I can tell he has no one to
blame at our end but he has been unable to get a meeting with the
opposites at AF. So we are still up in the air.”

“AF must be
planning to take us to court Dad. It could be very damaging.”

“It won’t get
to that if we can close a deal today.”

“You still
happy to sell Dad,” Peter asked.

“Yes, as we
discussed Peter. I have reflected further. This business is now
worth tens on millions. When I took over from your grand father it
was only worth about a million. We have done well. The AF debacle
stops our gallop. But I am conscious that I am not getting any
younger Peter. I am running out of time. I’d like to cut and run
and start up with you Peter in the near future.”

“Dad, that’s
great, but first you must get your tax situation sorted. Second
there is a likelihood that AF will want me to stay with O’Byrne’s
for a year or two to give transition support. The O’Byrne name has
a cachet. But in time Dad.”

“Don’t
disappoint me son,” Michael said looking worried.

“I got engaged
myself,” Peter added to change the topic.

“Good God!
Who's the lucky girl?”

“It is Janet
Simmons the AF consultant.”

“Crawford’s
assistant negotiator? Are you mad?”

“She’s the
one.”

“Peter are you
sure? Is she right for you?”

“We are in
love. It developed as we came into contact over the AF affair. At
first I just wanted an inside track, to know what was going on, but
something developed.”

“Are you sure
she has accepted?”
“Yes Dad. She will be embarrassed to be on Crawford’s side
supporting the bid.”

“That’s life
son. Best of luck,” Michael said in a heartfelt way and embraced
his son.

“Thanks
Dad.”

“I am delighted
you are going to settle down. The trust fund, I’ll arrange
settlements as soon as you are married. You are taking
responsibility now Peter. I am proud of you.”

“I’ll tell
Janet that I have told you. And great news about Dorothy! Wait
until I meet her. She is a dark horse.”

“I’ll mention
to your mother about your pending engagement Peter. She will be
pleased.”

“I
understand.”

“Nice to see
you doing the right thing boy. Pour me another drink, there are a
few things we have to discuss.”

Peter poured
Michael another brandy and settled himself in a chair opposite his
Dad.

“What’s
worrying you Pater?” he asked.

“Pater? It’s a
long way we are from the Latin now Peter. I remember...”

“Dad, forget
the schooldays, what’s on your mind?”

“This afternoon
of course. The way I want to play it is this. We put each bidder in
a separate room and we have our room. We initiate a round of
discussions with each and then we put on the squeeze.”
“How dad?”

“We get the
principles together around the table and conduct a Dutch auction.
Highest bidder wins.”

“Even if it is
not AF?”

“Regardless”

“You can handle
it dad.”

Michael grinned
broadly. His son was clued in, a man of the world.

“I need you and
Dorothy with me every step of the way. I don’t want AF to back off
either.”

“
I wouldn’t worry Dad. When these big companies work out a
position they stick to it. He'll be bidding.” Peter grinned but
inside he was churning. This approach could upset his personal deal
with Crawford.

“O’Donoghue are
too small to bid on their own. What is it, a merger or a takeover
proposal? Are they alone or have they backers?” Peter enquired.

“Old man
O’Donoghue has a consortium.”

“Dad, I think
you are wasting your time.”

“Maybe, but I
have agreed to have O’Donoghue here and to stay overnight. I have
to see him now. It's only manners. He's an interesting old man
anyway.”

Michael smiled
and continued, “We can sound him out. No harm just listening. What
Peter might be worth a few million on the price?”

“Whatever you
say Dad,” Peter agreed.

Michael and
Peter finished their drinks and went to the living room.

Ann was there
and so were Dorothy and Ann-Marie. They were all drinking Champagne
and there was a festive air.

“Well, well,”
Michael said expansively, and took Dorothy in his arms and kissed
her cheeks.

“Great news,”
he added, “two engagements, two weddings. What a day.”

“Peter has got
engaged,” he added and was delighted to see the stunned expressions
on the faces of his wife and daughters.

They all
toasted the happy couple.

“Amazing,”
Dorothy, commented when she heard it was Janet Simmons.

“Are we set for
the negotiations?” Michael asked Dorothy.

“Yes we will
need a half hour. I’ve gone through John’s figures and Dermot’s
defence on the quality issue. Nothing has changed on the O’Byrne
figures. Still a major financial crisis when we lose the AF
business. Dermot has his defences but the water is muddy.”

“Good,” Michael
said. “Peter, when Crawford and Simmons arrive you make sure they
are settled in. I will greet Colm O’Donoghue, as I have known him
down the years. Then we set things in train. Everyone
comfortable?”
“Yes,” Peter said.

“Keep your mind
off Janet as and treat her as a consultant to the bidder for the
afternoon. When the deal is done you can get moon eyed about her as
much as you like.”

“I am also
expecting Jeremy, my fiancé and his Partner David. I will have to
give them some time when they arrive.”
“Will they interfere with our meeting? They must not distract you
Dorothy,” Michael said looking worried.