by Arthur Rawl
“Again, thank you, good morning”, and we continued past the guard to the elevators at the back of the lobby where one was waiting open for us. I glanced back at the reception desk and saw the receptionist with one hand extended to a wall mounted control panel that I assumed was for the elevators. There was no building directory in the lobby and no buttons to call the elevators. This fine old building was more like a bank than an office.
Robin was near the unmarked door when we walked through. “Did they call you and say I was on the way up.”
“They certainly did. After all the crap the last few weeks it feels good to be in a place that looks out for you.”
“The receptionist said all the security guards would be able to recognize me in an hour. Did you give them a picture of me?”
“No, the system automatically photos everyone that comes into the building. It also time stamps the photo.”
“There has to be a lot of faces for them to remember.”
“You didn’t look up when you got out of the car. The building is only eight stories tall and its footprint isn’t very big. Seven floors above the lobby and I think there are only five occupants who all own their space. We’re ‘guests’ of one of them because there are no leases allowed.”
“How did you find out about the building?”
“Jóse Carlos helped one of the maids who had a problem with her car just after she drove out of the garage. Inside the building staff would have had to take care of her problem because no service people are allowed downstairs in the garage. She worried that they might complain and she would lose her job.”
“He’s an easy going guy who likes to talk when he’s not driving. It’s good for him and helpful to us. Did he find out whose guest we are?”
“… some big cattle company. The owner keeps an office suite on the other side of this floor. Jóse said the owner has done someone ‘big’ a favor and let us use the spare space on this side.”
“Jóse didn’t find out who the owner is did he?”
“No, he said the maid was too worried about her job to use any names even though she seemed open enough about everything else.”
“Well, even though our name isn’t on the door or in the lobby we’re officially in business and we have a client coming this morning. Where is my office?”
“It’s next to the conference room.”
“Thanks, that’s helpful.”
Pointing, “You have the very grand corner office. I hope you don’t mind that we took out the bowling alley.”
I walked to the open door, “God it’s big! The paneling is outstanding. It has to be old Amazon mahogany. Look at the color, it is almost as translucent as a gemstone. It must have waxed every week for decades.”
“Decades is right, the building was built by the current owners in the thirties and was in the middle of a six-acre garden when it was new. None of the floors have ever been sold or traded. The only passing of title has been to heirs. The owners must have made a mountain of money selling the land off when this area got hot in the forties and fifties.”
“The question is did they get the money out or lose it all when the old cruzero crashed and burned?”
“Obviously, all the furniture came with the place and it’s in better shape than brand new. We couldn’t find anything like it if we wanted to.”
“What’s it costing us?”
“As I said, we are guests because the building doesn’t allow any rent. It’s ours to use for at least five years. After that it’s up to Mr. Big whoever he is.”
“It costs us nothing?”
“I said we’re guests, we don’t even pay for the telephone. Even, the kitchen supplies including coffee and goodies are handled by the building housekeeping staff although we can tell them what we want and don’t want.”
“I think I have to go kiss someone’s ring. This place is worth a fortune.”
“Can I go and watch?”
“No, we have to get ready for our client. Obviously he is interested in what we know about BrasTel. My lawyer said with Sam firing me and you resigning we have been freed of our duties to Lazer particularly when you consider BrasTel’s letter to the Board and the related reputation and monetary damage we suffered because of Sam.”
“Where should I put our client when he gets here, your office or the conference room?”
“I haven’t looked around and don’t plan to today.”
“Let me put it this way, the conference room makes your office look small and shabby. It kind of reminds me of a tour I took at Buckingham Palace including the somewhat hidden bathroom at the far-right corner.”
“Is it too much?”
“I don’t think so considering the million Dollar wire in the checking account labelled retainer probably came from him.”
“You saw that.”
“Naturally, you know I watch everything. You might also be interested to know that I had Jóse ask his friend to sweep the place for bugs and it’s clean.”
“That is interesting. I was told that we would be both left alone and kept safe if we picked up their offer but I didn’t really believe the ‘left alone’ part.”
“Maybe the owners don’t go in for that sort of stuff in the building.”
“Believe me Robin, if the people we’re really working for told the owners to do something there would be no questions asked.”
Robin nervously ran her fingers through hair, “Shit, as I said before still playing out of our league. All the money and the fancy offices are new but everything else is just the same. I still feel like I’m on a tightrope over a pool, a damned pool of alligators.”
“No, you’re wrong. One thing is different, one very important thing. We’re playing at the top of the heap with the home team instead of trying to crawl up hill from the bottom.”
“Yeah, but one thing won’t be different. I’m still going to keep my passport and an airline ticket with me along with some mad money.”
“Fine but put on your sweet face when our client gets here. If he’s Germanic he’ll be right on time, ten o’clock sharp.”
“But if he’s really Austrian he’ll be fifteen minutes late to make a grand entrance.”
“We’ll see. Please have whoever does so in this place bring me coffee. Jóse Carlos is getting us some French pastry from downstairs so please pick something out for me. I’ll be in my office trying to sort out where you put my things.”
The office at about thirty by forty feet was larger than Lord Hanson’s in London that was the subject of jealous gossip within the merchant banking community. The highly-polished desk was sized to fit the proportions of the room as were the conference table and chairs at the opposite end from the room. The space between desk and conference table held two overly large dark maroon leather club chairs separated by a small table just large enough to hold drinks for two and an ashtray for their cigars. All shared one thing, a deep red Oriental carpet that had to have been made for the room. Taken together the room looked, smelled and spoke loudly of limitless money and power. It was the kind of space I never wanted to own.
Walking across the room to the corner windows behind the desk I imagined business and political dealings that must have been conducted here. Brazil’s history was filled with ups and downs, good times and bad and politics as confused as anywhere in South America. From these windows there was no view of modern São Paulo’s traffic and overflowing sidewalks. Below was a walled garden maybe fifty feet wide and two hundred feet deep. Mature trees lined the walls with canopies high that reached beyond the walls shielding the garden from the small streets on two sides and the houses behind. Inside a serpentine path wandered between small patches of manicured grass and flowering bushes connecting three shaded sitting areas where the surrounding city could be forgotten during a few moments of solitude.
Far through hazy space the skyline consisted of high-rise office buildings on Ave. Paulista. Below them treed residential areas were broken by medium-rise buildings sticking
up through the carpet of green tree tops. From here São Paulo seemed an orderly calm place still living its history as a small agricultural city on a high plateau by the sea. Perhaps the world had changed around this urban island but from where I stood time had slowed to a crawl long ago.
“Wake up Carl. Its ten-fifteen and Herr Hans Dieter von Lieghter is being brought up by security.”
“I didn’t hear the phone.”
“It’s set real quiet. I guess they didn’t want to disturb the karma of the big shots.”
“Get him settled please and I’ll be right in.”
Five minutes later I walked into the conference room and was brought to a stop. Lavish was an understatement with miles of dark tropical wood paneling, gilded moldings, stained glass windows and a glowing mahogany table so heavily carved that it seemed more of a monument than a work space. “Good morning Herr von Lieghter. Welcome to Brasil. I am Carlton Matthews and we are delighted by the opportunity to serve you. Ah good, you have been served coffee while you waited.”
“Good morning Mr. Matthews. Yes, coffee, excellent coffee, you know we Viennese pride ourselves on our coffee. Thank you.”
“I am happy you approve of the local bean.”
“Oh,” with the jolly smile of a doting grandfather. “It is a world famous bean and correctly so. Allow me to introduce myself to you once again. I am sure you will not remember me. We met when you were a little boy at your step father’s office in ‘The City’. Your grandfather and I did a great deal of very profitable business together after the war. I was sorry to hear of his passing he was a good man and a good partner.
von Lieghter was at least eighty years old but seemed to radiate energy. He was a big man in height and girth with lively blue eyes, neatly trimmed greying blonde hair and a wide smile. He was dressed in enough linen to make sails for a good sized yacht with each layer, shirt and suit, immaculately tailored in rich traditional Austrian style.
“Forgive me but you are right, I don’t recall our meeting.”
“Ah so … back then I was in charge of rebuilding the industrial plants near Salzburg. Your step father was an immense help to me in working with the Americans. He helped get things done that I thought impossible considering I was dealing with people who were my enemy not so long before.”
“Mother told me my grandfather did a lot of that kind of work during the post-war years. First he was working for our government and then on his own. People said he made a substantial contribution to Great Britain’s recovery.”
“He did and was instrumental in the recovery of both my country and Germany. That is why I was so delighted when my banker, Dr. von Salzbeck, suggested you were uniquely qualified to assist me.”
“Thank you and I’ll be sure to drop a note of thanks to Herr Dr. von Salzbeck. Now how can I help you?”
“Let me give you background please. Until nineteen sixty-six, I was a General in the Austrian Army Engineering Corps. In the early forties when I was a Colonel I had the privilege to be in Berlin as a military liaison. I became friendly with my counterpart at the Brazilian embassy and he convinced me of the unlimited investment opportunities in his country. He was a good salesman and I did invest after the war when I was able to accumulate some money again. The investments did well for me and now that I am an old man the income is very welcome. Several months ago my old friend called me and asked if I would like to lead an investment group that would be involved in buying an industry the Brazilian government was planning to privatize. His offer to me personally was very attractive so in time I said yes. So, the story continues here today with the son of another old friend and business partner.”
‘How surprising’ crossed my mind, an army general and it’s a good bet the Brazilian Military Attaché in Berlin was Aranni. “I assume we are talking about BrasTel.”
“You assume correctly.”
“Your group wants to buy the entire equity being offered by the government?”
“We do; my understanding is that acquiring one hundred percent is the only structure the seller will consider.”
“Yes, it is the only acceptable deal structure. Please forgive me for commenting on public information. You understand the government will only accept a one-hundred percent cash deal payable in Dollars or Euros and paid in full at closing.”
“We understand the requirements and understand there is not unanimous political support for the deal.”
“That’s good particularly because in a privatization deal the political risk is usually the biggest risk. You and your group will be subjected to scrutiny by both the friendly and unfriendly politicians. Customarily the unfriendly ones will not limit themselves to facts. Here in Brazil they might well use baseless innuendo and spread public gossip about a proposed buyer and its investors in an attempt to make approval by the friendlies politically risky, perhaps too risky.”
“That is a very direct explanation. More direct than I have heard the local political risk described before. Is there a chance the deal will not close because of politics, a significant chance?”
“I have some insight into both the politics and the people involved. The up-coming presidential election complicates the environment and raises the stakes in all significant decisions for incumbents. Still, I think that if a deal for BrasTel can be structured and agreed before the real pre-election foolishness gets heated early next year it has a very good chance of a quick closing. If that happens BrasTel will no longer be a hot political issue even if there is still some political noise remaining in the wind.”
“I will be equally frank. Some of my partners do not want their financial interests disclosed. Naturally, we will supply all required documents in official form however they may not contain a fully accurate picture of us.”
“My responsibility would be to you and therefore whatever you give me will be passed on without question or comment if that is what you prefer as long as we are able to observe the law in doing so. If we have a concern we will of course turn to you in the hope it can be put to rest. However, as I’m sure you understand, there will be a thorough independent inquiry into whatever we furnish to the seller concerning the proposed buyer.”
“We are prepared for the most careful independent review. My country like Switzerland understands its unqualified first duty is to its citizens and corporate citizens. In anticipation of this matter being brought up early in the due diligence process we prepared this set of documents describing our investment vehicle, our investors and the sources of the investment capital.” Sliding a thick brown envelope across the table, “There are two copies. One copy is for BrasTel and one for your files. Its contents will of course be verified by Government and banking records as well as by prominent people in Europe. I expect you will want to talk with Dr. von Salzbeck so I made him aware of our meeting this morning. I am sure you found my formal introduction in your account with his bank. If you decide to go forward with us please be kind enough to deliver a confirming letter to me at my hotel, the new Gran Hyatt in Novo Brooklin.”
“Thank you. I appreciate your frankness and your preparation. Perhaps you will be kind enough to join me for lunch tomorrow. By then I would have reviewed the information and made one or two calls. I would not be surprised if I was able to hand you the letter confirming our engagement when we meet. Do you have a car and driver?”
“Yes, from the hotel”
“One of the best local restaurants is Antiquarius on Alameda Lorena. It is the sister of another noted Antiquarius in Rio. The style is old world Portuguese with just a tiny bit of new world added. We could meet there for lunch tomorrow, let’s say two o’clock.”
“I would be delighted. I have never been to Brazil before and to have a guide is a comfort.”
“The restaurant is very well known. Just tell your driver the name and he’ll get you there.”
“Anticipating the results of your inquiries perhaps we can talk about next steps and whether I need to be in Brazil every day until closing. I do
not mind flying back and forth between Vienna and São Paulo but I would prefer to spend as much time as possible at home. My wife is not well and the doctors are not optimistic.”
“Should we decide to work together today’s electronic devices make it easy to be in different places and still do most of what is necessary. However, you should probably count on the need to meet face to face with BrasTel’s management before a transaction can be closed.”
“I have planned to be here for one week but can extend my stay for a second one should the need arise.”
“I understand. We can talk further about scheduling at lunch tomorrow. By then I will have a clearer picture. Lastly, a formality, your retainer will remain intact until we agree or not agree to work together. If either of us chooses not to go forward I will ask Herr Dr. von Salzbeck to return it to you.”
“I would expect no less, thank you.”
“If there is nothing else I will ask Robin to escort you to the lobby.”
“Only one thing, I would like to visit the bathroom please.”
“Forgive me”. Pointing to the back of the room, “I believe there is a facility through the door on the left.”
von Lieghter rose from the chair with an ease not typical of a man his age and size. His posture stiffly erect, he marched off to the bathroom, an imposing figure exhibiting a lifetime of strict, old world military discipline.
Opening the conference room door, “Robin, Herr von Lieghter will be leaving in a few minutes. Could you type up the address of Antiquarius for him and then escort him to the lobby. When you come back call Antiquarius and get a table for three of us at two tomorrow.”
“Afternoon or morning, remember this São Paulo.”
“Lunch please and also, plan to join us. I want to properly introduce you to him.”