Chapter 205 - Chapter 205: Report from the Broker
The butler informed Marquess Cavendish that the former boss had confessed.
This made the Marquess frown.
"This is bad. Should we take the initiative and explain the situation ourselves?"
The Marquess asked the butler, and the butler shook his head.
"No, that would only serve to inform them that we came here. That would make the relationship definitive. It would be better to maintain an attitude of 'we didn't know' or 'we were framed.' We should press on with the stance that we merely had a slight connection in the past and were terribly inconvenienced by being framed as the mastermind."
"Indeed. Offering to speak first would be a bad move."
Thus, Marquess Cavendish decided to wait and see what House Archibalt would do, but no particular action came from House Archibalt.
While they waited, the capital increase for Cavendish Construction began.
After the announcement of the capital increase, the stock price, which had been accelerating its decline, began to reverse when it was finally put up for sale. Hearing the stock price movements, the Marquess felt relieved as both the cash flow and the stock price stabilized.
However, the stock price would soon plummet.
The cause of the plunge was rumors that the Marquess might face investigation regarding irregularities in public works contracts and suspicions of bribery in permit applications associated with the redevelopment of the Royal Capital.
It was common sense among market participants that Cavendish Construction existed only because of the Marquess, and if the Marquess were to be arrested, the shares would become worthless.
Investors who disliked risk increased their selling.
The Marquess was irritated by this situation.
"Who spread such rumors that I would be arrested!"
"It is currently under investigation."
The butler answered thus, but inwardly he had already given up on finding the culprit. The source of the rumor was a pamphlet. Pamphlets containing rumors of the Marquess's arrest had been delivered to major brokers. The sender was unknown, but it was said to contain detailed accounts of the alleged irregularities.
The brokers conveyed this information to their favored clients, and it spread, leading to the current selling. The butler was aware of these circumstances. That was why he had given up on catching the culprit of the anonymous pamphlet.
However, telling the Marquess this would not make him accept it readily, so he had simply answered that it was under investigation.
Now, regarding this capital increase, Cavendish Construction in this instance did not sell all newly issued shares at once, but adopted a mechanism similar to MS Warrants, selling them out little by little each day.
The contract period between the Marquess and Salieri Trading Company lasts until the sale of these new shares ends.
Cavendish Construction's stock price had fallen again, but somehow it continued to trade above the minimum issue price of the new shares. Of course, this was despite the rumors, because there were investors buying up the shares.
A story about these investors buying up shares was brought to the Marquess's residence by a broker who frequented the Cavendish household. The butler handled the matter as usual.
"In fact, it seems that several investors are buying shares of Cavendish Construction."
"Is there some problem with that?"
When the butler asked, the broker nodded.
"With this capital increase, Your Excellency's shareholding ratio is decreasing. If they continue to buy, they might take over the position of the largest shareholder."
"Are there really people buying such a large amount?"
The butler was surprised by the broker's words.
"No, currently there are about five people who have bought up to around 7 to 8 percent. However, this is a peculiar transaction amidst such bad rumors."
Upon hearing this explanation, the butler thought, "Well, it's nothing serious."
"At that level, it won't even reach Your Excellency's shareholding."
"Yes. However, if they continue to buy from here..."
"Even so, it won't threaten Your Excellency's position."
"Yes. However, if they collude as shareholders, Your Excellency's opinions will not be heard."
Hearing this, the butler laughed.
"That is excessive worry. Cavendish Construction exists because of Your Excellency. Without Your Excellency's skill, maintaining the current performance would be impossible. Therefore, in the end, they must follow what Your Excellency says."
It is no exaggeration to say that the profits of Cavendish Construction are generated by the Marquess. Even if the shareholders colluded and drove the Marquess out, the company could not generate the same profits as before.
If the Marquess colluded with another company, ordered public works to that company, and refused to issue construction permits to Cavendish Construction, it would collapse immediately. In that case, all the funds invested in buying the shares would go up in smoke.
"Yes, that is so. Therefore, I have come to report the current situation just in case."
The broker feared being blamed later for not reporting if a problem arose, so he came to report in advance.
In the end, this matter ended without being reported to the Marquess.