March 28, 1996.
A taxi pulled up in front of The Peninsula Hotel, a landmark that had stood for years overlooking the beautiful Victoria Harbour in the heart of Tsim Sha Tsui, Hong Kong's most vibrant and bustling commercial district.
A moment later, the rear door opened, and a tall, affable-looking Caucasian man stepped out.
It was Eric Bernas, a former Merrill Lynch trader who had been recruited by Eldorado Fund and was managing multiple offshore companies from Hong Kong.
Passing through the glass doors held open by a uniformed doorman, Eric entered the hotel and strode confidently across the opulent, palace-like lobby, heading straight for a café on the side.
"Welcome, sir."
A smiling hostess greeted him at the entrance.
"I believe there's a reservation under the name David Chen."
"One moment, please."
The hostess checked the reservation book before looking up and asking,
"Are you Mr. Eric Bernas?"
"Yes, I am."
"Your companion has already arrived and is waiting for you. Please follow me."
With that, Eric followed the hostess into the café.
Lined with tall columns extending from the spacious, three-story-high lobby, the café exuded a sense of elegance. Despite being a weekday afternoon, nearly all the tables were occupied.
Eventually, the hostess stopped in front of a table where an Asian man was seated.
The man appeared to be in his late 30s, with a slightly receding hairline and a round face that gave him a genial appearance.
"Mr. Eric Bernas?"
The man stood up and asked, prompting Eric to respond immediately.
"Yes, that's me."
"Hahaha, a pleasure to meet you. I'm David Chen, the one who contacted you."
Speaking English with a distinct Hong Kong accent, Chen extended his hand first, and Eric shook it firmly.
The business card Chen handed him bore the title: Vice President, Peregrine Securities, Hong Kong.
As they both took their seats, a waitress approached with menus.
"What would you like to order?"
Dabbing his forehead with a handkerchief, Chen spoke warmly.
"The Earl Grey tea here is quite good. They use high-quality tea leaves, and the aroma is excellent."
"Then I'll have the same."
Turning to the waitress, Chen raised two fingers.
"Afternoon tea set for two, please. Earl Grey for both."
"Understood."
After acknowledging the order with a polite nod, the waitress departed. Chen smiled again, his eyes narrowing slightly as he looked at Eric.
"I appreciate you coming on such short notice."
"Not at all."
"I heard you used to work at Merrill Lynch?"
Living in Hong Kong for over five years, Chen knew that a few phone calls were all it took to confirm such details. Eric nodded without hesitation.
"That's right. Until two years ago, I was a senior trader at Merrill Lynch's Hong Kong branch."
"I also heard that you were one of the top five traders there."
"I appreciate the compliment."
Though Chen wore a friendly smile, Eric could sense the sharp gaze scrutinizing him. It was clear that, despite his outwardly amiable demeanor, he was no pushover.
Choosing to feign ignorance, Eric remained humble, prompting Chen to let out a hearty laugh.
"Hahaha. If I had known such a talented individual was available, I would have made a recruitment offer much sooner!"
"You're too kind."
At that moment, a waitress approached their table, carefully setting down their ordered menu items along with the tableware.
As expected from a five-star hotel, the gold-trimmed utensils were all from the luxury brand Tiffany & Co., while the silver tea set boasted an elegant design.
A three-tiered tray stacked with scones, sandwiches, and cakes filled the air with a sweet and nutty aroma.
"Enjoy your meal."
After the waitress stepped away, Chen effortlessly lifted the silver teapot, holding a strainer in place as he poured tea into Eric's cup.
"Since I recommended it, you should give it a try."
Eric nodded slightly, lifting the teacup for a sip.
A refreshing taste, rich with malty and fruity notes, confirmed that they were indeed using a premium blend.
"How is it?"
"Excellent. Just as good as any specialty tea house."
Before moving to Hong Kong, Eric had barely known anything beyond coffee. But now, he had developed a taste for fine tea.
Chen picked up a scone from the three-tiered tray, placed it on his side plate, and then casually asked, still wearing his usual affable smile,
"By the way, Jupiter Fund isn't a familiar name. Is it a private fund you assembled yourself, or is it a subsidiary of another investment firm?"
"I'm afraid I can't disclose that information."
Eric set down his teacup without any change in expression, his tone firm.
Chen narrowed his eyes slightly as he observed Eric, but then let out a lighthearted laugh.
"Haha. I suppose I got too curious and asked something too personal on our first meeting. My apologies if that was inappropriate."
"No problem."
Though he laughed it off, Eric could tell Chen wasn't an easy opponent.
The way he smoothly navigated the conversation without letting the atmosphere turn awkward was telling.
Maintaining his composure, Eric leaned back against his chair and calmly asked,
"So, what's the reason you wanted to meet me?"
Chen set down his knife and fork, dabbed the corner of his mouth with a napkin, and finally answered,
"I understand that Jupiter Fund holds a 5% stake in Mido Department Store in Korea. Is that correct?"
Eric gave a slight nod.
"That's right."
Chen leaned forward slightly, his tone turning more direct.
"We'd like to purchase the entire stake. Would you be willing to sell?"
As expected, Eric had anticipated this move, and his eyes gleamed with interest.
However, he kept his expression composed, showing no reaction as he calmly asked again,
"Did you just say you want to buy our stake in Mido Department Store?"
"That's right."
"I'm curious—why is Peregrine Securities interested in Mido Department Store shares?"
Chen shrugged nonchalantly, as if it were no big deal.
"One of our high-net-worth clients is looking to invest in a Korean retail company. We're just facilitating the transaction."
Eric rested one arm on the table, studying him carefully.
"If that's the case, wouldn't it be easier to buy shares directly from the Korean stock market?"
"We considered that, but the foreign investment cap is nearly maxed out."
His excuse was utterly unconvincing, yet delivered with effortless confidence.
"So you're asking us to sell our stake instead?"
"Exactly."
At the time, the Korean stock market had a foreign ownership limit per stock, meaning that once the cap was reached, even wealthy investors couldn't buy a single additional share.
On the surface, Chen's reasoning sounded plausible. But Eric tilted his head slightly, feigning curiosity.
"If I recall correctly, in just a few days, Korea's foreign investment cap is increasing from 15% to 18%. Wouldn't it make more sense to wait and buy shares then?"
Of course, Eric already knew exactly why they wanted the stake, but he played dumb, keeping his expression neutral.
For a brief moment, Chen's eyes narrowed, but he quickly masked it with a practiced smile.
"Sure, the cap is increasing, but it's only a 3% bump. Rather than dealing with that hassle, we'd rather secure Jupiter Fund's stake all at once through a block deal."
"It sounds like this 'high-net-worth client' is planning to buy up a significant portion of Mido Department Store's shares."
Eric's tone was casual, but his eyes glinted with interest.
Chen didn't respond. He simply offered a strained smile, clearly irritated by the persistent questioning.
"To be honest, while we do hold the shares, Mido Department Store isn't exactly a highly profitable company. Dividend yields aren't particularly high, and the retail sector is fiercely competitive. I have to wonder—why the sudden rush to acquire such a large stake?"
Lowering his voice slightly, Eric subtly pressed further.
"Are we talking about an M&A attempt?"
"Hahaha. You have quite the sense of humor. Even if someone wanted to, how could they pull off an M&A when the foreign ownership cap is set at 18%?"
Chen dismissed the idea as if it were completely absurd.
But Eric didn't miss the fleeting look of unease that crossed his face before he quickly masked it.
'So I was right on target.'
When someone aggressively accumulates shares in a single company, there are usually only two explanations: either they have inside knowledge of a major upcoming development or they're planning an M&A.
'Given that Mido Department Store is in the middle of building its new Gangnam branch, they won't be increasing dividends anytime soon. That only leaves one possibility—a hostile takeover.'
Chen might have been trying to play it cool, but he clearly realized that Eric wasn't buying his excuse.
It was only natural. In the cutthroat world of Hong Kong finance, no one was naïve enough to take vague explanations at face value when dealing with high-stakes transactions.
Yet the fact that Chen had openly proposed a block deal meant only one thing—either they had already secured enough shares to push forward, or they were about to go all-in on acquiring more.
Chen's smile faded as he looked at Eric with a direct, unwavering gaze.
"So, will you do business with us?"
Eric, on the other hand, leaned back casually, folding his arms.
"Well… This is quite an unexpected offer. Plus, I don't have the authority to make this decision alone, so I can't give you an immediate answer."
"Of course, I understand. But I'd just like to know one thing—do you have any intention of selling?"
"That depends entirely on the terms."
"We'll offer you a 30% premium over the current market price."
Eric stroked his chin, deliberately unimpressed.
"Given how much the stock has dropped, that's still far below our average purchase price. Honestly, it's not a particularly attractive offer."
"Then what price would you consider reasonable?"
Eric pretended to deliberate for a moment before raising his gaze.
"At least a 60% premium. Then we might be open to considering a sale."
Doubling the counteroffer in one go—and yet, even then, he wasn't agreeing to sell outright.
Chen's brow furrowed slightly as he fought back a sigh of frustration.
'He knows we're desperate to buy and is milking the situation for all it's worth.'
It was irritating, but with the foreign ownership cap in place, Eric's stake in Mido Department Store was critical to their plans.
So, despite his growing annoyance, Chen kept his composure.
"As you just mentioned, the stock price has dropped significantly. Don't you think that's too expensive?"
Eric's response was maddeningly relaxed.
"You're the one who approached us about buying. If you think it's too pricey, you're free to walk away."
Chen couldn't help but find Eric's laid-back attitude infuriating.
But there was no denying the reality—Eric was the one holding all the leverage.
'Damn it. This is getting complicated.'
Chen had expected some level of resistance, but not this level of blatant price-gouging.
Suppressing his frustration, he forced a neutral expression and spoke.
"Understood. Since you need time to discuss, why don't we meet again tomorrow to continue negotiations?"
"Sounds good."
A short while later, after parting ways with Chen, Eric exited the hotel and climbed into one of the taxis lined up at the entrance.
As soon as the door closed, the middle-aged taxi driver turned around and asked:
"Where to?"
"Take me to Central."
"Understood."
As the driver responded and the taxi pulled away, Eric glanced briefly at the hotel entrance, watching it shrink into the distance. Then, he reached into his inner pocket and pulled out his phone.
He tapped in a number and pressed the call button. After a few short rings, the person on the other end picked up.
[Hello?]
"Landon, it's Eric."
It was the middle of the night in New York, but Landon had been waiting up, knowing that Eric was meeting with representatives from Peregrine Securities today.
[How did it go?]
"As expected, they approached me to sell our stake in Mido Department Store."
[Just as we thought. Got it. Keep a close eye on Peregrine Securities' moves and report back.]
"Understood."
TL/n -
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