Park Jin-hyuk had no intention of selling his shares. Having already realized the potential value of Novo, there was no reason to hand it over to another company. Nevertheless, he brought up money first because he did not want to waste time with useless small talk.
Ultimately, the core of the meeting was money, and Park Jin-hyuk judged that the weight of the conversation would shift depending on how the money was handled.
The Bayer representatives had intended to naturally bring up the topic of money after the conversation had progressed to a certain point.
This was because they believed approaching him with money from the very beginning would be out of character for the Park Jin-hyuk they had researched. However, Park Jin-hyuk had unexpectedly started the conversation with money as his very first words.
Snyder and Weinman looked at each other for a moment before bursting into laughter at Park Jin-hyuk’s words. Then, Snyder turned to Park Jin-hyuk.
“We know how much your investment in Novo was, Executive Director Park. How much are you thinking?”
“Does my investment amount even matter in this situation? You wouldn’t pay just the price of a garage when acquiring Apple or Google, would you?”
“I see. My apologies. Then, we will state the amount we are considering first.”
Snyder finished speaking and looked at Weinman. Weinman took a document out of his briefcase, handed it to Park Jin-hyuk, and spoke.
“Considering the future value of Novo as we see it, along with the shares you hold, Executive Director, and adding a premium for being the majority shareholder, our proposed amount is $500 million.”
Park Jin-hyuk pursed his lips at Weinman’s words and looked at the document he had been handed with indifferent eyes. Though $500 million was a large sum, it was not much different from the offer he had received when he previously went to Austria.
‘It seems they’re ready to start the negotiation,’ Park Jin-hyuk thought as he looked down at the documents.
Bayer also seemed to know that Park Jin-hyuk had received offers from various places. Thus, they appeared to be starting the conversation by first bringing up a price close to the offers he had already received.
Offer the lowest amount possible, but don’t let the other party walk away. It was the fundamental rule of price negotiation. Park Jin-hyuk knew this well, so he pushed the document back toward Weinman.
“Make another proposal.”
Park Jin-hyuk did not say whether he liked it or disliked it, nor did he say that the price was low or how much he was thinking of. Park Jin-hyuk had conducted these types of negotiations countless times. He felt no reason to haggle over useless prices with a clumsy attitude.
Therefore, he demanded a second proposal first to see how much room they had in their offer. If he heard the second proposal, he could estimate the maximum amount they were considering.
Weinman, who showed a momentary look of bewilderment at Park Jin-hyuk’s words, glanced at Snyder. Snyder also seemed surprised by Park Jin-hyuk’s attitude.
He bowed his head to think for a moment and then nodded toward Weinman. Weinman, after confirming Snyder’s approval, made another proposal to Park Jin-hyuk.
“Fine. It seems $500 million is not satisfactory. Then, how about this? We pay $500 million in a lump sum and add another $200 million, paying $20 million every year for the next ten years.”
Park Jin-hyuk could not help but burst into laughter at Snyder’s proposal.
“Hahaha. Didn’t you come here today to negotiate the transfer of shares? Then you should make an attractive offer to sway my heart; why are you trying to joke with me? $200 million over ten years? Did you perhaps come here without knowing who I am?”
Park Jin-hyuk finished speaking and looked back and forth between Snyder and Weinman. Then, with the laughter gone from his face, he spoke again.
“I may not be at the helm of a global company like Bayer, but I am the heir of the DS Group. I already have hundreds of billions of won in my personal fortune. Do you really think my heart will be swayed by adding $20 million every year? If you’ve come to this meeting, you should have brought something that would shake me. This is too half-hearted.”
Park Jin-hyuk made a move to get up from his seat. Roughly hearing their total proposed amount of $700 million, he felt he knew the limit of what they had come prepared for.
‘A maximum of $700 million as a lump sum? Or maybe $800 million? It seems they came with a range like that in mind.’
The offer he had received when he was in Austria was slightly over $400 million. In that sense, the amount they had in mind was not absurdly low. However, no matter how reasonable the amount was, it did not feel attractive to Park Jin-hyuk at all.
Toward Park Jin-hyuk, who was about to leave his seat, Weinman blocked him by throwing out a new proposal.
“Very well. Then how about business cooperation between Bayer and DS Pharmaceutical? And we will also pay the money we offered in installments as a lump sum instead.”
Park Jin-hyuk relaxed the tension in his body as he was about to stand. Then he looked at Snyder and Weinman. Their expressions showed a firm determination, as if they were intent on reaching some kind of result in this meeting no matter what.
A smile spread across Park Jin-hyuk’s indifferent face. Then he raised his hand, called Kim Jun-woo over, and whispered quietly into his ear.
“Cancel all my existing schedules and get me a flight ticket and accommodation for Austria. I’ll head out as soon as this meeting is over, so time it accordingly. And tell Novo that I’m coming.”
Kim Jun-woo, understanding Park Jin-hyuk’s words, nodded and quickly left the room.
‘Why do they seem so obsessed with Novo?’
Park Jin-hyuk also agreed that Novo was an attractive acquisition.
Although they were suggesting acquisition prices in the hundreds of millions, such as $700 million or $800 million, from the perspective of a company like Bayer, it was actually acquiring the company at a very cheap price, so it was understandable why they were targeting Novo.
Furthermore, as Novo was a startup showing results, it was only natural it looked attractive to existing companies seeking new growth engines.
However, the individuals who came to negotiate the acquisition were not ordinary. And their attitude of trying to see results quickly while making proposals felt somewhat awkward in Park Jin-hyuk’s eyes.
He knew that even if he asked the reason in this meeting, they would not answer him. And since Park Jin-hyuk had not been receiving detailed reports out of respect for Novo’s autonomy, he could not know the reason here. That was why he had booked a flight to Austria to find the reason himself.
Park Jin-hyuk felt the need to provoke Bayer a little while Kim Jun-woo was handling the arrangements. He felt that only then would their true intentions come out.
“I heard that Bayer fell into great difficulty after acquiring Monsanto a few years ago. I’ve even heard that you are taking a very passive stance toward mergers and acquisitions because of it. Perhaps that’s why the level of your proposals doesn’t suit my taste at all.”
“The Monsanto issue… will be resolved soon.”
“It will be resolved. But how many years has that problem been going on now? I heard it’s at a level where you have to worry about the very survival of the company just from the compensation amounts. Is that not the case?”
“There are parts that the media has arbitrarily expanded and interpreted. We already fully recognized those parts when we acquired Monsanto. Everything is within our expectations, so there is no problem.”
“Still, I heard the number of pending lawsuits reaches the tens of thousands. Can you really resolve them all? I heard that if things go wrong, you might have to pay out tens of billions of dollars in compensation.”
“This meeting isn’t for talking about Monsanto, is it? Why do you keep bringing up Monsanto, Executive Director? Are you not interested in the Novo contract?”
Snyder and Weinman’s expressions were rapidly deteriorating as the conversation continued. It meant that the lawsuits triggered by the acquisition of Monsanto were acting as an Achilles’ heel for Bayer. Park Jin-hyuk, having confirmed that they were becoming agitated and losing their composure, subtly turned the conversation back toward Novo.
“I’m still sitting here because I’m interested. If I weren’t interested, I would have walked out that door already.”
“Then why do you keep bringing up Monsanto?”
“I’m worried that you might include some strange clause in the Novo acquisition, saying you’re using the Monsanto experience as a lesson.”
“We aren’t that unscrupulous. And we have reviewed it sufficiently. There’s no need to worry about that with Novo. Even if you call them new drugs, all Novo has are Tatulumaide, which is already on the market, and the two treatments currently under development, right? A blood cancer treatment will take a long time to wait for clinical trials to pass, and what big problem could arise with a pancreatic cancer drug whose use isn’t even properly recognized…”
Vice Chairman Snyder stopped mid-sentence and turned his head toward Weinman. This was because Weinman had gripped Snyder’s thigh hard under the table while he was speaking, cutting him off.
Weinman shook his head toward Snyder, who was looking at him. He was conveying the message not to say any more. Only then did Snyder realize he had inadvertently said too much. However, by the time Snyder realized it, Park Jin-hyuk had already noticed.
‘The successful marketing of Tatulumaide wasn’t Bayer’s intention for acquiring Novo. A new drug? It doesn’t seem like the blood cancer drug, which they said would take a long time for clinical trials… The pancreatic cancer drug that they “didn’t realize the use of”? Is that the target?’
Through Snyder’s words, Park Jin-hyuk had a faint grasp of what they were aiming for.
Snyder looked anxious, worried that Park Jin-hyuk might have understood the meaning of what he had said. Park Jin-hyuk simply smiled at that sight and did not show any reaction. Since he had already noticed their intention, there was no need to reveal it outwardly.
Silence hung over the room for a moment, and then the share negotiation continued. However, Park Jin-hyuk’s mind was already elsewhere.
The tedious negotiation proceeded, but Bayer gradually began to look exhausted by the progress that failed to move forward an inch. Eventually, at the end, they made their final proposal to Park Jin-hyuk.
“$800 million. We will also proceed with that as a lump sum. If you wish, we are even prepared to sign here and send the money immediately.”
“$800 million in a lump sum. That’s at a level that actually sounds attractive. It’s a shame; if you had come out like that from the beginning, I might have felt differently.”
“What do you mean by that?”
“I’m saying that if I had heard about the $800 million at first, I might have been swayed. But now, I have a lot on my mind. I’ll make a decision after I go to Novo and have a talk.”
Park Jin-hyuk finished speaking and stood up, indicating that he would not continue the conversation any further.
The Bayer representatives tried to stop him, but they could not hold back Park Jin-hyuk, who was leaving after offering a handshake. Park Jin-hyuk walked out of the conference room ahead of the Bayer guests.
Kim Jun-woo, who was waiting outside, hurriedly approached Park Jin-hyuk as he came out and reported the results of what he had been instructed to do.
“I’ve made a reservation for a flight this evening. I’ve also arranged a hotel near Novo.”
“You contacted Novo, right?”
“Yes. Aside from appearing flustered by the news of your sudden visit, there was no special reaction.”
“Good.”
“But where are you going, Executive Director?”
Kim Jun-woo, who had naturally assumed they would go to Park Jin-hyuk’s office, asked as he saw Park Jin-hyuk press the top button in the elevator.
After Park Jin-hyuk had taken his position at DS Pharmaceutical, he had never once visited Kyung Dae-yong’s office. Kim Jun-woo was surprised to see him going to meet Kyung Dae-yong immediately after the talk with Bayer had ended.
“I should see President Kyung before I leave for Austria.”
“President Kyung?”
Novo was a company Park Jin-hyuk had invested in personally. There was no need to meet Kyung Dae-yong before going there.
Kim Jun-woo, who had not been present at the meeting with Bayer, ended up thinking that there might be a problem with the cooperation between Novo and DS Biologics.
“Why are you so surprised? It’s no big deal. Talking with the Bayer people, I suddenly saw a way to solve our current problems, so I’m visiting him. Don’t make that face. And what’s so special about an Executive Director visiting a President?”
Park Jin-hyuk was the one who had not done that “not so special” thing for months. If there was something, he had called Kyung Dae-yong directly to his office, and Kyung Dae-yong had naturally accepted such calls.
This was because not only Kyung Dae-yong but everyone else acknowledged that although they were divided by the ranks of Executive Director and President, the actual head of the DS Pharmaceutical division was Park Jin-hyuk.
Kim Jun-woo followed him without a word at Park Jin-hyuk’s explanation. He thought there must be a good reason for him to visit Kyung Dae-yong. However, the reaction of the party in question, Kyung Dae-yong, was more intense than expected.
“Oh, Executive Director. What brings you here? Did something happen? I wasn’t paying attention because I heard the Bayer people came to meet you privately, but did they say something strange? Have they not left yet? Should I go see them?”
Whether he found Kyung Dae-yong’s reaction amusing, Park Jin-hyuk watched him silently and only spoke after Kyung Dae-yong had finished.
“It’s alright. I didn’t come because of that. I have to head out soon, so let’s sit down and talk first.”
Confirming that nothing major had happened through Park Jin-hyuk’s words and expression, Kyung Dae-yong finally sat across from Park Jin-hyuk with a relieved face.
“Do you have dinner plans?”
“No. Not dinner plans, but I’ll be leaving for Austria in a little while.”
“If it’s Austria, are you going to Novo? You didn’t say anything until a moment ago. Was it a sudden decision?”
“Yes. While meeting with Bayer, I made up my mind to go to Novo.”
“You decided to visit Novo after meeting Bayer?”
Kyung Dae-yong found the reason Park Jin-hyuk was trying to visit Novo within his words. Kyung Dae-yong also had his own guesses as to why Bayer had visited Park Jin-hyuk privately.
They must have come to buy his shares in Novo, and furthermore, he could roughly guess the outcome even without Park Jin-hyuk saying anything. Even in Kyung Dae-yong’s opinion, there was currently no reason for Park Jin-hyuk to sell his shares in Novo.
However, the fact that he was visiting Novo seemed to mean that the situation could change somehow.