I was sitting there, racking my brains, when the phone flashed.
'I've got an idea.' It was Cathy.
My pulse quickened. 'Tell me.'
'Hamilton might not believe Cash, or Piper or maybe even you, but he would believe me.'
'You mean, if you told him to invest in the deal?' I said doubtfully.
'No, if I told him not to invest in it.' She told me her idea. It sounded a good one.
Cathy called at precisely half past three. I had made sure that I was talking to Hamilton at exactly that time, in the hope that he would let me listen in. Sure enough, once it became clear what Cathy wanted to talk about, Hamilton gestured to me to pick up.
I heard Cathy's clear voice speaking hesitantly. 'Cash was very keen that I check to see whether you have made up your mind about joining the consortium.' She managed to inject a hint of reluctance into her tone, as though she didn't really want to know the answer.
'I think it's unlikely,' said Hamilton.
'Urn, OK,' said Cathy. 'I'll tell Cash. He will be very disappointed.'
'You do that.'
Hamilton was just about to put the phone down when Cathy blurted, 'Can I just ask you one question?' She sounded nervous.
'Yes?'
'Why aren't you going ahead with it?'
Hamilton paused. He seemed to decide there was nothing to be lost by telling the truth, and said, 'It smells funny. I don't know why, but there is something else going on here that Piper didn't admit to.'
'Oh, I'm very glad you said that,' Cathy gushed, relief in her voice. 'You are quite right, it doesn't seem at all straight. They are all absolutely certain that this takeover is going to happen. I don't know where they got the information from, but I am worried it is not legal. I would much rather have nothing to do with the whole thing. I don't know what to do. Should I report this to someone?' Hamilton didn't reply. Cathy went on. 'Cash would kill me if he heard I had done that. And what if there is nothing wrong with the deal, after all?'
Hamilton had tensed ever so slightly. He was listening carefully to everything Cathy said. 'No, I wouldn't report it if I were you. As long as you don't know where they got the information from, you can't be implicated.'
'Are you sure?'
'Quite sure.'
'OK, then.' Cathy sounded doubtful.
'What will Cash do if I don't invest?'
'Well, there is another investor in the States who is thinking about it, but if he doesn't take it, then we have got Michael Hall at Wessex Trust lined up to take the whole forty million.'
Hamilton's eyes narrowed. Michael Hall was renowned in the City as smart money. He was often profiled in magazines, and lauded for his ability to buy and sell at the right time. Hamilton refused to give interviews, and claimed to scoff at Hall as a publicity-seeker, but the reality was, he envied him his reputation. If Mix N Match was indeed a golden opportunity, Hamilton would be incensed if Hall took it and he didn't.
'There is a small point I don't quite understand,' he said. 'Why should Piper want to get me of all people in on this?'
'Oh, he didn't,' said Cathy. 'Cash insisted on this. In fact I think he is behind this whole thing. He sees this as a way of getting his key clients to make a lot of money. I think he is worried that since Paul left in such difficult circumstances, he might lose your account. He's desperate to get you in.'
'I see.'
'So shall I tell Cash you are not interested?'
'Yes,' said Hamilton and rang off.
Damn, I thought. Cathy had done an excellent job, but it looked like Hamilton still wasn't biting.
Rob strolled over. 'Are we going to do this Mix N Match, then?' Hamilton leaned back in his chair, stroking his beard. 'That girl talks too much,' he said.
'I think she is scared,' I said. 'It's a good thing we have let it
go.'
'I don't think we will let it go,' Hamilton said. 'I believe her. I think Cash does know something, and showing a sure thing to his favourite customers is just the sort of thing he would do. And I am damned if I am going to let that prima donna Hall get his hands on this one.'
'So we do it?' Rob asked.
'We do it.'
'Great!' said Rob.
Hamilton rang Cash. When he answered, Hamilton said, 'Cathy isn't on the line, is she?'
'No,' said Cash.
'Well, I think you should watch out for her. I just spoke to her and I think she is a little ah,' Hamilton searched for the word, 'concerned about this deal. Just for my own conscience, there is nothing illegal about this transaction or the manner in which you got the information relating to it, is there?'
'Hey, Hamilton, you know I'm straight,' protested Cash. 'This deal is 100 per cent kosher, you have my word.'
Hamilton didn't believe him, of course, but he wanted to cover himself in case anything went wrong.
'Good. Well, I'm in for twenty million. Send the documents round here by courier for me to sign. And don't let Cathy find out I have committed. Get her off the deal somehow.' He hung up, turned to me and smiled. 'This is going to work,' he said. 'I know this is going to work.'
I went back to my desk, and called Cathy. 'Well done! You were brilliant!' I said.
'You think he's definitely going for it?' she said.
'Definitely.'
'I am going to New York for four days tomorrow,' she said.
'I'm following up on some of the clients Cash and I saw when we were over there last month. Let me know what happens. Cash should be able to tell you where I am.'
'Don't worry, I will,' I said. Something made me uneasy. 'Cathy?'
'Yes?'
'Be careful of Waigel.'
'Why?'
'Just be careful. He's dangerous. I would hate you to get hurt.'
'Don't worry. I won't go anywhere near him. Besides, there is no reason he should be worried about me.'
'OK, I suppose you are right.' I wasn't convinced.
The documents were signed that afternoon, and Hamilton authorised $20 million to be paid into the account of the new SPV. Phoenix Prosperity also signed up that afternoon, and transferred $20 million into the same account. Cash said that Jack Salmon had been raring to go, and had been furious that his boss had not given him the go- ahead straight away. Piper signed the subscription agreement, but delayed transferring his $20 million subscription into the SPV's account.
So within twenty-four hours, the SPV was in existence and it had $40 million of funds at its disposal.
I found it very difficult to concentrate, or even pretend to be concentrating on my work over the next couple of days. Hamilton was cool as ever, of course, just checking once to make sure that the prices of Mix N Match bonds hadn't fallen.
Once Denny, as trustee for the SPV, confirmed that the funds were in place, I acted. I didn't have much time. I had to wait until the brief quarter of an hour when Hamilton was away from his desk buying a sandwich. Most of the others were at lunch as well, although Stewart, Debbie's replacement, was at his desk, leafing through a bondmarket rag. He would probably hear what I was going to do. That was just tough.
First, I called Denny. Over the recorded phone, I sold to the SPV the $20 million Tremont Capital position held by De Jong at par. Then I sold De Jong's $20 million stake in the SPV back to it at par. It only took a minute. Stewart cast a quick glance at me whilst I was talking on the phone, and then went back to his magazine. He hadn't been able to hear what I was doing.
