Red Notice-Chapter 5 & 6, Essay Example

In chapter 5, Browder shows his interest in investing in Eastern Europe, especially Russia. With an MBA from Stanford and work experience from BCG, he manages to get a job with the successful merger and acquisitions deal closer in the Soviet Bloc called Robert Maxwell (Billionaire from Czechoslovakia). Maxwell’s employees described him as an aggressive capitalistic businessman who could fire you any given moment, and he always managed his firm like a ‘corner shop’.

Employees of Maxwell’s Communication later learn of Maxwell’s death at sea (November 1991), which caused the firm’s share price to fall. After that, so many corruption cases and corporate scandals are unraveled. MCC had taken out huge debts from the bank and also illegally took £460 million to boost its balance sheet and, therefore, maintain its share price. Apparently, Robert Maxwell was found to be fraudulent, and his firm was placed in receivership and managed by Arthur Anderson LLC. The bankruptcy administrator retained Browder, but it later proved difficult for Browder finding a job based on the bad history and reputation of MCC.

In chapter 6, Browder manages to get a job as an investment banker with Salomon Brothers UK division. It was an ‘ailing’ Wall Street firm, and so Browder had a difficult time transitioning to more exciting roles within the company. Both the Hungary and Polish Salomon privatization team denied him opportunities of joining their team. However, after months of hustling for new business, Browder meets a Russian Lawyer, who tells him of a potential privatization deal for the Murmansk Trawler Fleet (a Russian fishing company).

Therefore, Browder flies to Russia to meets Yuri Prutkov, the President of Murmansk Trawler Fleet, and he discovers the gross miscalculations in the acquisition value of the company. He wonders if the same is happening all over Russia considering that the Russian privatization program was just new. Browder meets up with a few investment and law professionals in Russia to get a better perspective of the Russian privatization program and the opportunities that come with it. He gets excited by the discovery, but nobody at Salomon Brothers is interested in his Russian investment ideologies. Luckily, he gets a phone call from Booby Ludwig, which leads to him giving an insightful presentation regarding the opportunities that exist in Russia. Surprisingly, Booby Ludwig is impressed with his performance and secures him $25 million worth of investment capital to use in Russia.