Anaconda Copper: The Greatest Deal in Wall Street History?

Apropos of nothing, here’s the amazing story of what might be the greatest M&A execution in Wall Street history…

The below is the true story of how the Anaconda Copper Company was purchased by William Rockefeller and Henry Rogers without their laying out a single dime of expenditure – they allowed the public enthusiasm for the stock market do the hard work for them…

Watch this deal happen in five simple steps:

1.  Rogers and Rockefeller gave a check for $39 million to Marcus Daly for the Anaconda properties, on the condition that he would deposit it in the National City Bank and leave it untouched for an unspecified period.

2.  They then set up a paper organization known as the Amalgamated Copper Company, with their own clerks as dummy directors, and caused Amalgamated to buy Anaconda – not for cash but for $75 million in Amalgamated stock which was conveniently printed for the purpose.

3.  From the National City Bank, Rogers and Rockefeller now borrowed $39 million to cover the check they had given to Marcus Daly, and as collateral for this loan, they used the $75 million in Amalgamated stock.

4.  They now sold the Amalgamated stock on the market (first having touted it through their brokers) for $75 million.

5.  With the proceeds, they retired the $39 million loan from the National City Bank, and pocketed $36 million as their own profit on the deal.

It doesn’t get any easier than that. When the stock market is in an uproar and eager to buy what companies are selling, they can do this sort of thing.  That was 120 years ago or so.

Robert L. Heilbroner, author of the 1953 book The Worldly Philosophers from whence the above description came, called it a “free-for-all” that involved “a staggering dishonesty.”  He probably would not have been surprised, however, had he lived long enough to see Facebook buy Instagram for a billion dollars a week before it sold its own paper stock to investors in an IPO.

Read Also:

Nine Financiers (TRB)

What's been said:

Discussions found on the web
  1. Crónica de un Legado de Libertad | Intension commented on Apr 14

    […] a corporaciones como Anaconda Copper, subsidiaria que pasó por las manos de Rothschild y luego Rockefeller. Intrigantemente, altos directivos de Anaconda mantuvieron extensas lineas de comunicación con […]

  2. https://eatverts.com commented on Sep 21

    … [Trackback]

    […] Read More Information here to that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  3. order THC concentrates online commented on Sep 23

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  4. Pinball Machines for Sale commented on Oct 14

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  5. axiolabs reviews commented on Nov 13

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  6. Call Now commented on Dec 11

    … [Trackback]

    […] Here you can find 45693 more Info on that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  7. fake seamaster 300 commented on Dec 17

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  8. rolex replica commented on Dec 21

    … [Trackback]

    […] Read More here on that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  9. 19올넷 commented on Dec 28

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  10. https://library.kiu.ac.ug/ commented on Dec 28

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]

  11. bmo online login commented on Jan 13

    … [Trackback]

    […] There you will find 58718 additional Information to that Topic: thereformedbroker.com/2012/09/24/anaconda-copper-the-greatest-deal-in-wall-street-history/ […]