239-240

Chapter 239: What Did I Do Wrong?

In a manor on the outskirts of London, Paul Ferrero and Antello Muriez, who had recently met with Milo, were now participating in a teleconference with several others and a host of telephones.

"He refused. Flat-out refused without any room for negotiation," Paul Ferrero said angrily during the meeting.

Antello Muriez added, "Didn’t we already anticipate this? The greed of Americans is known worldwide. It takes a steep price to make them back down, no matter which American you're dealing with."

“So, are we supposed to hand over SGS-Thomson Microelectronics to him outright?”

“We're not handing it over. He’s only asking for 60%.”

“Sixty percent for $200 million? How is that any different from giving it away? We've already invested over $2 billion into this company!”

The meeting had been noisy and contentious from the start. Some participants felt compromise might be an option.

After all, if relinquishing 60% of the shares could allow SGS-Thomson Microelectronics to enter the United States—the world's largest market—it might be worth considering as a form of protection money.

Still, the majority opposed it.

The Americans wanted to use just $200 million to take 60% of SGS-Thomson Microelectronics. The demand was outrageous.

Let’s take a closer look at SGS-Thomson Microelectronics.

Founded in 1987, it was the product of a merger between Italy's SGS Microelectronics and France's Thomson Semiconductors, forming a Franco-Italian joint venture.

Without Milo’s interference, the company would be renamed STMicroelectronics the following year.

According to the latest industrial statistics, this company is currently the fifth-largest semiconductor manufacturer in the world and a leader in several markets.

For instance, it is the world's largest producer of dedicated analog chips and power conversion chips, the largest supplier of industrial semiconductors and set-top box chips, and a leading company in discrete components and automotive integrated circuits.

In essence, this company represents Old Europe’s cutting-edge leadership in semiconductor hardware.

However, constrained by Old Europe’s declining influence, most of SGS-Thomson Microelectronics’ market lies in Central and Western Europe.

As for North America, the world’s largest market, and the rapidly growing Asian market, SGS-Thomson Microelectronics has little presence or influence.

Nonetheless, it is undoubtedly one of the most advanced and outstanding semiconductor manufacturers in the world, which is precisely why Milo targeted it and why Americans are vying for control.

"Enough!" Antello Muriez interrupted the chaotic teleconference.

He sighed in frustration and said, "Arguing is pointless. Everyone, we need to focus on how to overcome this crisis instead."

“I don’t think we should compromise!” Paul Ferrero maintained a firm stance.

Although their family was primarily in the candy business, they had long diversified their investments, including into semiconductors.

Paul Ferrero, as the family member responsible for this direction, was adamant about not losing their foothold in this sector. Losing it would mean losing significant influence within the family.

“We’ve been working with lobbying groups in Washington all along, haven’t we?” Paul Ferrero suggested. “We could increase our investment there. I’m sure Milo Blackburn has enemies in America too. The enemy of my enemy is my friend—someone will surely step up to oppose Blackburn.”

“Someone? We can’t just hope for others to intervene, especially since they’re all Americans,” Antello Muriez countered.

“So, what are you suggesting? Surrender to the Americans and hand over SGS-Thomson Microelectronics’ shares?” Paul Ferrero retorted sharply.

Antello Muriez fell silent.

“Ahem, gentlemen,” Pierre Simon, the chairman of SGS-Thomson Microelectronics and the representative chosen by the shareholders, spoke up.

Pierre Simon, a member of the French Academy of Sciences, said, “This is not the time for arguments. Let’s lay out our current issues one by one and find solutions for them.”

Pierre Simon was the spiritual leader of SGS-Thomson Microelectronics.

Although his expertise wasn’t in semiconductors, his reputation in the French and Western European scientific communities was considerable. His leadership had attracted numerous elite researchers to the company.

With these experts, SGS-Thomson Microelectronics had managed to carve its path, despite intentional or unintentional suppression from Americans.

Simon’s authority in the company ensured that his suggestion was met with agreement.

“It seems everyone agrees? Then let’s start with the first issue: our CEO, Mr. Ravina, being arrested in the United States. Reports indicate that Ravina violated California’s anti-discrimination laws. If convicted, he could face a prison sentence of five to ten years.”

“The problem extends beyond Ravina. Many members of his team have also been detained on various charges.”

“These detained individuals include our chief semiconductor engineer and other critical personnel.”

“We cannot sit idly by. This is not just a morale issue; we cannot afford to lose these people.”

Simon’s words were accurate.

CEO Ravina had led the team to the U.S. following an invitation from Intel and GF Semiconductor. Intel expressed interest in building a factory in Europe and collaborating with local semiconductor manufacturers.

This was a major opportunity. Securing the deal would mean steady business for SGS-Thomson Microelectronics for the next decade.

Ravina took the company's top researchers along, hoping to learn from the world’s leading semiconductor nation while fulfilling the business agenda.

However, things had gone disastrously wrong.

In retrospect, the sudden invitation and subsequent accusations made it clear that SGS-Thomson Microelectronics had been set up by the Americans.

The scale of the setup was absurd. Out of a 30-person delegation, only two translators and three assistants were free of charges.

Everyone else was accused of crimes. If this wasn’t a blatant conspiracy, what was?

“Take them to court!” Paul Ferrero said firmly. “Americans love lawsuits, don’t they? Then let’s hire the best lawyers in the U.S. to fight this in their courts!”

---

*Antro Muriéz:* "That's a possible solution. But we need to understand one thing: the cost of litigation in the United States is the highest in the world. I suspect that the money we’ll need to bring Ravina and the others back might not be much less than the losses we’d face by selling our shares to Milo Blackburn."

Seeing the two about to argue again, Pierre Simon stepped in to mediate.

*Pierre Simon:* "Mr. Muriéz and Mr. Ferrero both make valid points. How about this: we organize a team to file an appeal and fight the lawsuit while continuing to negotiate with that American?"

Everyone agreed.

*Pierre Simon:* "Now, let's move on to the second matter."

*Pierre Simon:* "This concerns the U.S. Department of Commerce's claim that we are threatening their national security."

To be honest, everyone present felt inexplicably wronged.

How could a European semiconductor company, whose primary market isn't even the U.S., threaten American national security?

Is U.S. national security really so fragile?

Could a semiconductor company alone jeopardize it?

Regardless, this issue couldn't be ignored, as the U.S. Department of Commerce had already issued a formal warning.

*Pierre Simon:* "Following standard procedures, we need to send representatives to answer their inquiries."

But here was the problem: all the company's top-tier personnel, both in research and management, were already detained in American custody.

Now, if they sent someone else, it would have to be from their second- or even third-tier personnel.

If the Americans were intent on making things difficult—and they most likely would be—could SGS-Thomson Microelectronics pass the U.S. Department of Commerce's inquiry with just these people?

It seemed unlikely.

The meeting room fell silent again.

---

While the French and Italians found themselves entangled in this bizarre predicament, Milo had not been devoting his attention to them.

He was merely replicating the Alstom playbook.

He only wanted a semiconductor company of his own—what was wrong with that?

The Americans simply didn’t want anyone, other than themselves, to become too competitive in high-tech fields—was that wrong?

Perhaps it was.

But this was the American way.

The strong dictate the rules.

The strong point fingers and make demands.

The strong take what they want while others dare not resist.

To be fair, this wasn’t unique to Americans.

Western nations were much the same.

However, the Anglo-Saxon pirate culture that dominated America made them more overt and brazen.

Unlike some other Western countries, which at least dressed up their intentions with a pretty facade, Americans were unapologetically direct.

At the moment, Milo had left London and headed to the Alps.

The Alps, located in south-central Europe, span northern Italy, southeastern France, Switzerland, Liechtenstein, Austria, southern Germany, and Slovenia.

It’s the largest mountain range in Europe and a critical watershed, with many major rivers—such as the Danube, Rhine, Po, and Rhône—originating here.

These rivers’ upper reaches, characterized by fast-flowing mountain streams, provide abundant water resources.

The Alps are, in many ways, the backbone of Europe.

Europe’s most vital regions rely on the rivers that flow down from these mountains.

Historically, however, the Alps were a barren wilderness with harsh climates.

No one but the mountain dwellers wanted to live there—it was a poor, desolate area.

It wasn’t until the Industrial Revolution that advancements in modern technology and industry made it possible to overcome the cold and adverse conditions.

The once desolate Alps gradually transformed into a hub for skiing, tourism, and nature retreats for Europeans.

This is similar to Tibet in China.

Before modernization, during the feudal era, it was a remote and undesirable region. Even the most powerful dynasties only exerted influence over it without directly governing it.

In those days of low productivity, such mountainous highlands were impossible to control.

But with modernization, especially as living standards improved, these areas now attract countless adventurers seeking spiritual fulfillment.

Every year, thousands of people embark on self-driven journeys to Tibet...

*“When basic needs are met, people pursue refinement.”*

This shift reflected that, by then, a significant portion of Chinese society had achieved material satisfaction and started seeking spiritual fulfillment.

The Alps hold a similar status in Europe.

By the early 20th century, the influx of visitors transformed the Alps into a globally renowned tourist destination.

The most famous attractions are, of course, the towering, snow-covered peaks and the array of winter sports offered there.

Take skiing, for example.

The mountain range spans multiple countries, so naturally, there are plenty of ski resorts.

Despite Switzerland’s extensive Alpine territory, the most famous ski resorts are in France, followed by Switzerland, Italy, and Austria.

This time, Milo and Irene were headed to a Swiss ski resort.

Their destination was Gstaad, home to 44 blue runs, 21 red runs, and 10 black runs, totaling over 200 kilometers.

Visitors can also enjoy cross-country skiing and heli-skiing. In summer, glacier skiing is another popular activity. Gstaad is regarded as Switzerland’s premier ski resort.

It’s also a favorite among the wealthy and elite, making it a popular destination for high society. Naturally, prices here are steep.

However, for affluent visitors, the experience is worth every penny.

Here, while skiing, you might unexpectedly bump into a movie star or even a royal family member.

For those seeking high-quality skiing at more affordable prices, France’s ski resorts are the better option.

Irene had visited ski resorts in multiple countries and was a regular at many.

However, given her status and preferences, she frequented Switzerland’s Gstaad resort the most.

Since she was familiar with it, Milo let her handle the arrangements.

With Irene in charge, everything from accommodations to transportation was top-notch.

By the following evening, the two of them and their team had arrived in Gstaad.

By mid-October, Gstaad was already getting cold.

Most of Gstaad, and the higher-altitude areas of the Alps, typically only experience summer and winter.

Summer is especially short, lasting just three to four months.

The rest of the year sees frequent snowfall, albeit less intense during the off-season.

In fact, you can even ski here in summer...

(End of Chapter)

Chapter 240: The First Step in Europe

What does it mean to be wealthy?

One of the hallmarks of being rich is the ability to act on a whim without any hesitation. Whenever you feel like going on a trip, you can leave immediately. Not only that, but you can experience the best and enjoy top-tier services.

For the wealthy, it's never about can or cannot—it’s only about want or don’t want. There’s no need to budget in advance.

The night view of the Alps is stunning, especially when viewed from the alpine snow-covered peaks.

By now, it was nighttime in Gstaad, a small mountain town reliant heavily on tourism. After dark, most activities are confined to drinking at the lodge or indulging in other indoor entertainment.

There weren’t many other options.

It’s not as though you could go skiing outside at night—it’s simply too dangerous.

Milo was here to enjoy a vacation, not to risk his life.

As the most luxurious ski resort town in all of Europe, Gstaad is home to a large number of five-star hotels.

In fact, Gstaad could even make it into the Guinness World Records, perhaps as the “small town with the most five-star luxury hotels.”

The hotel Milo was staying in was called *Ultima Gstaad*, which translates to “The Last Gstaad” in English.

This hotel was unique. It consisted of three wooden buildings: one was functional, housing the lobby and various service facilities, while the other two contained guest rooms.

The two buildings with rooms were spacious, with only six or seven rooms in each. Normally, the hotel could only accommodate about 15 guests at a time—there simply weren’t more rooms.

To ensure his vacation wouldn’t be disrupted, Milo had naturally booked the entire hotel, reserving both guestroom buildings.

Even then, there wasn’t enough space, so he had to book an additional room in a nearby hotel to fit everyone.

After dinner in the wooden lodge housing the hotel lobby, Milo and Eileen admired the snowy scenery for a while before heading back to their room to sleep.

They needed time to adjust to the mountain climate and high altitude before starting their activities the next day.

Milo and Eileen shared the largest room in the hotel, as they were in the throes of a passionate romance. Especially for Eileen, her approach to love lacked any technique—she relied solely on emotional expression.

For a couple like this, alone in one room, whatever was meant to happen naturally happened.

The night was filled with sweetness.

They slept until they woke naturally.

At around 8 or 9 in the morning, as the sun began to rise, Milo woke up naturally.

His physical condition had long surpassed the limits of an average human. In fact, he only needed two to three hours of sleep per day to feel fully energized and maintain his health.

Most of the time, however, he allowed himself to sleep as long as he wanted.

After all, he wasn’t a worker bound by a 9-to-5 schedule, nor did he have to wake up early for a job.

With so much wealth and so many businesses under his name, enjoyment was the only logical choice.

Fine wine and beautiful women, villas and yachts, luxury cars and designer watches—these are all forms of enjoyment.

But so is the freedom to sleep without constraints.

When Milo woke up, he stared blankly at the ceiling for a few moments before heading to the bathroom.

After freshening up, he climbed back onto the mattress, hugged Eileen, and was about to share an intimate moment when he noticed it had started snowing again outside.

In the sunlight, the snowflakes danced and floated gracefully, creating an ethereal beauty against the backdrop of distant snow-covered peaks and the quaint town.

Suddenly, Milo turned his head and said, annoyed, “If you’re awake, just say so. What are you doing?”

“Mmm... Nothing,” Eileen mumbled.

“Then what’s with your hand?”

“Hehe, I’m cold. It’s warmer under here.”

Milo snorted dismissively and, without humoring her antics, threw her back onto the bed.

As Eileen pouted and rolled around dramatically, Milo ignored her and got ready for breakfast.

Reluctantly, Eileen got up and joined him in the hotel lobby for breakfast.

By the time they finished eating, it was already 10 a.m.

The snow outside had stopped, and the bright sunlight made the snowy peaks even more breathtaking.

It was perfect weather for skiing, so a large group of people set out for the slopes.

However, Eileen was slightly annoyed. Milo had promised to spend time with her, but it wasn’t long before he returned to work.

After lunch, Milo gathered his advisors and consultants from the Blackburn Foundation and retreated into the hotel’s meeting room.

“André, let’s hear it,” Milo said.

In the meeting room, he looked at André, his second-in-command and chief advisor for the Blackburn Foundation.

His time in Europe hadn’t just been about vacationing or spending time with Eileen.

Aside from making some minor plays in the London financial market, his primary focus was on the French market.

Compared to the UK and Germany, France—one of the “Big Three” of Europe—had yet to be fully consumed by American influence.

Looking at his boss, André nodded and said softly, “Based on information from various channels, we’ve found that the situation in France is noticeably more complex than in Germany or the UK.”

The idea that France's situation is more complicated than the UK’s is not a baseless assumption by André but rather the truth.

Among Europe’s three major powers today—the UK, France, and Germany—Britain undoubtedly has the most lenient attitude toward oil interests. This is due to several factors.

The most apparent factor lies in the circumstances of the three nations during World War II.

Germany needs no explanation, and France suffered occupation, with its domestic oil families subjected to German purges. In contrast, Britain, protected by the English Channel, managed to safeguard its homeland, allowing its oil families and financial groups to maintain their strength.

Additionally, London remains Europe’s financial center. The number of publicly listed companies in Britain is substantial, and oil families and financial groups excel at controlling or influencing many of these firms. Naturally, this impacts the British attitude toward them.

France and Germany, on the other hand—especially Germany—are less inclined toward listing family-owned enterprises. They prioritize control over their businesses and long-term development. This approach significantly limits the infiltration of oil interests into these countries.

Moreover, this situation in France and Germany has enabled many families to maintain dominance over certain industries for decades, or even centuries.

Even though France has undergone multiple regime changes, these family-run businesses have remained steadfast.

Whether under the constitutional monarchy or the current republic, France has always been ruled by these families—this hasn’t changed.

One need only look at the fact that the Bourbon, Orléans, and Bonaparte families, which once ruled France, still exist today to see this truth.

They truly still exist, and this is a European tradition. For this reason, ancient Europe often saw dynastic restorations. Unlike ancient China, which rarely left remnants of previous dynasties…

According to statistics, family businesses make up more than 40% of the top 250 companies in France and Germany.

Many have ownership shares of 80%, 90%, or even complete control!

This ratio is staggering because, as Milo knows, family businesses in the U.S. comprise less than one-third of companies.

Most have been acquired or jointly controlled by major financial groups later on. Companies fully controlled by a single family from start to finish are rare.

Take Cargill, for example. It’s a giant and one of the "ABCD" agricultural trading firms. Yet, even Cargill only holds about one-third of the shares in its own group.

As the saying goes, "Flies don't land on seamless eggs!"

Many of France’s "tempting eggs" are seamless.

Milo and his team, skilled as they are in various business tactics, find it challenging to penetrate many French companies.

Additionally, the connections among France's old families are incredibly tight. If you stir up trouble with one, it’s like kicking a hornet's nest.

If not for these reasons, France would not be the most difficult country for American capital to penetrate.

This is evident in France’s frequent independence from the U.S., often opposing or countering it.

Among Europe’s three major powers, the UK is the most obedient due to their "father-son bond," where interests largely align.

Germany is held back by military presence, so it can’t act tough, leaving France as consistently defiant.

In capitalist societies, governments represent the will of capital. If American capital manipulates its government to achieve its goals, French capital can certainly influence its government to resist or even counterattack.

Through discussions with André and other advisors, Milo gradually formed a foundational strategy.

After careful consideration, Milo decided that his endeavors in France would primarily focus on the tertiary sector, supplemented by the secondary and primary sectors.

It’s not that he doesn’t want to penetrate deeply into industries critical to the French economy, like manufacturing, but the reality simply doesn’t allow it.

France’s heavy and military industries are mostly off-limits. Many are state-owned, and the remainder is dominated by family businesses that are nearly impossible to take over.

For instance, consider France’s two major automotive companies: the PSA Group (Peugeot-Citroën) and Renault Group.

The former is held by the Peugeot family and the government. The Peugeot family, despite owning only 25% of the shares, controls 38% of the voting rights.

The French government also holds 14%, and together, they make it untouchable.

As for the latter, Renault Group, it’s even more off-limits.

This second-largest automaker in France is also a major military contractor. During World War I, it produced weapons, ammunition, aircraft, and light tanks for France, and during World War II, it manufactured arms for Germany.

After the war, the Renault family was ousted, and the group became wholly owned by the government.

Apart from these heavy and military industry giants, France has numerous large industrial conglomerates.

But Milo has learned a lesson: if a country’s heavy industry is not to be controlled by foreigners, the only solution is nationalization.

If privatized, profit-driven capital will often sell off unprofitable heavy industries to foreign investors.

Thus, investing in manufacturing in France is both challenging and risky.

Of course, the main issue is that most ventures lack a future!

Yes, they lack a future!

Milo is likely the only person in the world who can confidently make this assertion at this time.

Although France has been undergoing "deindustrialization" for years, it still maintains strong competitiveness in fields like aviation, automobiles, rail transportation, defense, and nuclear power.

The families and financial groups involved in these sectors won’t sit idly by as their industries decline.

According to statistics from the French government earlier this year, the manufacturing sector accounted for 18.49% of GDP in 1996, while the service sector made up 57.83%.

However, Milo remembers that by 2020, the share of manufacturing in GDP had fallen to less than 10%, while the service sector exceeded 70%, surpassing the UK, Germany, and Japan!

In the future, France will have a limited number of competitive manufacturing enterprises globally. Instead, it will be renowned for its retail, luxury goods, cosmetics, wine, and consumer goods.

These industries have not yet reached their explosive potential, making them extremely promising.

Given the difficulty of entering the established domains of French families and financial groups, leveraging insights from the future to secure early advantages in these sectors is undoubtedly the best approach.

When these fields eventually explode with potential and profitability, French families and financial groups will no longer be able to restrict Milo, allowing him to gain a firm foothold in France.

With these core pillars, supplemented by companies in other sectors, his overall competitiveness and influence will be formidable.

With this in mind, Milo wrote down three key terms on paper: fashion industry, wine industry, retail industry.

These align perfectly with his original purpose for coming to Europe.

These sectors allow Paladin Media to shine while avoiding hostility from the French government and major financial groups.

But where to start with the fashion industry?

Gucci is Italian, and the negotiations are nearly complete.

Acquiring it is only a matter of time.

However, France is the true hub of Europe’s luxury brands.

According to André’s research, the dominant player in French cosmetics, L’Oréal Group, is off the table for acquisition. This is undoubtedly a regret for Milo.

But there’s nothing he can do. L’Oréal’s founder, Eugène Schueller’s only daughter, Liliane Bettencourt, distrusts everyone. If Milo can’t acquire it, neither can anyone else.

Moreover, she’s incredibly cautious and rarely leaves Paris.

Even if Milo were willing to risk offending all the major French financial groups and attempt the same strategy he used with STMicroelectronics, it would be impossible to succeed.

American police couldn’t possibly storm into Paris to arrest that old woman, could they?

From this point, it’s evident that members of these large French conglomerates are highly cautious and deeply distrustful of Americans.

They rarely leave France, seldom venture outside Europe, and almost never visit the United States…

Currently, the largest shareholder of the L’Oréal Group is Gesparal, holding 53.7% of L’Oréal’s shares.

However, Gesparal is merely a shell company established for the sole purpose of cooperative holding. It has only two shareholders: Liliane Bettencourt, who owns 51%, and the Swiss Nestlé Group, which holds 49%.

The reason for this arrangement dates back to 1974 when Liliane Bettencourt learned that the French government was considering nationalizing L’Oréal. As a defensive measure, she brought in Nestlé to safeguard her interests.

That year, the French government, successfully lobbied by Nestlé, approved the partnership.

However, a restriction was imposed: Liliane Bettencourt and Nestlé were prohibited from selling, transferring, or pledging their shares in L’Oréal for 20 years.

Now, that restriction has expired.

If Milo intends to target L’Oréal, his only option would be to acquire the Swiss Nestlé Group.

Otherwise, he could only purchase a portion of L’Oréal’s shares on the stock market to become a major shareholder.

In Milo’s view, investing in L’Oréal is a must.

However, for his strategic goals, he needs full control of a cosmetics company.

As for Chanel, it’s also out of the question.

Chanel is privately owned, with over 70% of its shares held by the Wertheimer family.

This family is extraordinarily powerful and historically owned half of Felix Amiot, the French manufacturer of Amiot bombers. It’s an old and prestigious French lineage.

Similarly, Hermès is hard to approach. The company is now in its fifth generation of family ownership, with the Hermès family collectively holding 56.2% of the shares.

As for the Kering Group, it’s currently just a 20-year-old timber company transitioning into the luxury goods sector.

Instead, the most promising target is LVMH, the luxury conglomerate that, in the future, will have a market value second only to L’Oréal among French luxury brands.

This group, formed ten years ago by Bernard Arnault through the merger of Louis Vuitton and Moët Hennessy, is a strong contender.

According to an analysis by the Blackburn Foundation, LVMH aligns best with Milo’s acquisition plans.

First, it’s composed of two major companies, with a dispersed shareholding structure. Its internal integration was only recently completed and remains unstable, with ongoing power struggles.

Second, its current scale is far smaller than its future self, which will dominate the global luxury market during its boom period. Its current strength pales in comparison to what it will achieve later.

So, is there any need to hesitate?

Start with this one!

(End of Chapter)