‘Then why were they allowed into the meeting?’
‘All they had to do was present the person checking the list with evidence of the minimum required shareholding and their identity. A hundred shares each for, say, a couple of hundred of them, would be all that was needed. They could have bought the stock from any broker on Wall Street, or Townsend could have allotted them 20,000 of his own shares as late as this morning.’
‘And that’s legal?’
‘Let’s say that it’s within the letter of the law,’ said Russell. ‘We could challenge its legality in the courts. That might take a couple of years, and there’s no saying which side the judge would come down on. But my advice would be that you should sell your shares and satisfy yourself with a handsome profit.’
‘That’s exactly the sort of advice you would give,’ said Armstrong. ‘And I don’t intend to take it. I’m going to demand three places on the board and harry the damned man for the rest of his days.’
Two tall, elegantly-dressed men in long black coats hovered a few yards away from them. Armstrong assumed they must be part of Critchley’s legal team. ‘So how much are those two costing me?’ he demanded.
Russell glanced at them and said, ‘I’ve never seen them before.’
This seemed to act as a cue, because one of the men immediately took a pace forward and said, ‘Mr. Armstrong?’
Armstrong was about to answer when Russell stepped forward and said, ‘I’m Russell Critchley, Mr. Armstrong’s New York attorney. Can I be of assistance?’
The taller of the two men smiled. ‘Good afternoon, Mr. Critchley,’ he said. ‘I’m Earl Withers of Spender, Dickson & Withers of Chicago. I believe we have had the pleasure of dealing with your firm in the past.’
‘On many occasions,’ said Russell, smiling for the first time.
‘Get on with it,’ said Armstrong.
The shorter of the two men gave a slight nod. ‘Our firm has the honor to represent the Chicago News Group, and my colleague and I are eager to discuss a business proposition with your client.’
‘Why don’t you contact me at my office tomorrow morning?’ said Russell, as a limousine drew up.
‘What business proposition?’ asked Armstrong, as the driver jumped out and opened the back door for him.
‘We have been invested with the authority to offer you the opportunity to purchase the New York Tribune.’
‘As I said...’ Russell tried again.
‘I’ll see you both back at my apartment in Trump Tower in fifteen minutes,’ said Armstrong, climbing into the car. Withers nodded as Russell ran round to the other side of the vehicle and joined his client in the back. He pulled the door closed, pressed a button, and said nothing until the glass had slid up between them and the driver.
‘Dick, I could not under any circumstances recommend...’ the lawyer began.
‘Why not?’ said Armstrong.
‘It’s quite simple,’ said Russell. ‘Everyone knows that the Tribune is in hock for $200 million, and is losing over a million a week. Not to mention that it’s locked into an intractable trade union dispute. I promise you, Dick, no one is capable of turning that paper around.’
‘Townsend managed it with the Globe,’ said Armstrong. ‘As I know to my cost.’
‘That was a quite different situation,’ said Russell, beginning to sound desperate.
‘And I’ll bet he does it again with the Star.’
‘From a far more viable base. Which is precisely why I recommended that you should mount a takeover bid in the first place.’
‘And you failed,’ said Armstrong. ‘So I can’t think of any reason why we shouldn’t at least give them a hearing.’
The limousine drew up in front of the Trump Tower. The two lawyers from Chicago were standing there waiting for them. ‘How did they manage that?’ asked Armstrong, pushing himself out of the car and onto the sidewalk.
‘I suspect they walked,’ said Russell.
‘Follow me,’ said Armstrong to the two lawyers, as he marched off toward the lifts. None of them said another word until they had reached the penthouse suite. Armstrong didn’t ask if they would like to take off their coats, or to have a seat, or offer them a cup of coffee. ‘My attorney tells me that your paper is bankrupt and that it is most unwise of me even to agree to speak to you.’
‘Mr. Critchley’s advice may well turn out to be correct. Nevertheless, the Tribune remains the New York Star’s only competitor,’ said Withers, who seemed to be acting as spokesman. ‘And despite all its current problems, it still commands a far higher circulation than the Star.’
‘Only when it’s on the streets,’ said Russell.
Withers nodded but said nothing, obviously hoping that they would move on to another question.
‘And is it true that it’s in debt for $200 million?’ said Armstrong.
‘Two hundred and seven million, to be precise,’ said Withers.
‘And losing over a million a week.’
‘Around one million three hundred thousand.’
‘And the unions have got you by the balls.’
‘In Chicago, Mr. Armstrong, we would describe it as over a barrel. But that is precisely why my clients felt we should approach you, as we do not have a great deal of experience in handling unions.’
Russell hoped his client realized that Withers would happily have exchanged the name of Armstrong for Townsend if half an hour earlier the vote had gone the other way. He watched his client closely, and began to fear that he was slowly being seduced by the two men from Chicago.
‘Why should I be able to do something you’ve failed so lamentably to achieve in the past?’ Armstrong asked, as he looked out of the bay window over a panoramic view of Manhattan.
‘My client’s long-term relationship with the unions has, I fear, become unsustainable, and having the Tribune’s sister paper, as well as the group’s headquarters, based in Chicago doesn’t help matters. I’m bound to add that it’s going to take a big man to sort this one out. Someone who is willing to stand up to the trade unions the way Mr. Townsend did so successfully in Britain.’
Russell watched for Armstrong’s reaction. He couldn’t believe his client would be beguiled by such sycophantic flattery. He must surely turn round and throw them out.
He turned round. ‘And if I don’t buy it, what’s your alternative?’
Russell leaned forward in his chair, put his head in his hands and sighed loudly.
‘We will have no choice but to close the paper down and allow Townsend to enjoy a monopoly in this city.’
Armstrong said nothing, but continued to stare at the two strangers, who still hadn’t taken off their coats.
‘How much are you hoping to get for it?’
‘We are open to offers,’ said Withers.
‘I’ll bet you are,’ said Armstrong.
Russell willed him to make them an offer they could refuse.
‘Right,’ said Armstrong, avoiding his lawyer’s disbelieving stare. ‘Here’s my offer. I’ll take the paper off your hands for twenty-five cents, the current cover price.’ He laughed loudly. The lawyers from Chicago smiled for the first time, and Russell’s head sank further into his hands.
‘But you will carry the debt of $207 million on your own balance sheet. And while due diligence is being carried out, any day-to-day costs will continue to be your responsibility.’ He swung round to face Russell. ‘Do offer our two friends a drink while they consider my proposition.’
Armstrong wondered just how long it would take them to bargain. But then, he had no way of knowing that Mr. Withers had been instructed to sell the paper for a dollar. The lawyer would have to report back to his clients that they had lost seventy-five cents on the deal.