JP Morgan announced agreement to merge with Chase which agreed to pay US$60 billion to exchange about 3.7 Chase shares for each Morgan share. Each Chase share was valued at about US$50 and Morgan share about US$180. There has been a lot of rumours and talks about impending buyout of Morgan for the last 2 years. It has finally happened and was the talk of every staff in Morgan.
That was what happened one day that first week in our pantry among some of our staff from the human resource department when I went there to top up my cup. I could not avoid joining in the most important topic for the week and asked them what the sentiments were in their department. One of the HR staff responded that they were not worried. When I asked why that was so since there were talks about impending cuts in staffing by about 3,000 world wide, she said that it was because 'Morgan is the best' and looked at me quizically as if saying that I should know that.
When I asked her why she thought Morgan was the best, she said 'everyone knows it'. So I insisted on getting some proof which was duly given : Morgan's stock price was $180 while Chase's was only $50! I was shocked and proceeded to explain to her that it was an incorrect conclusion and gave her the example that my having $50 dollar notes in my wallet while another person having only $10 notes in his does not mean that I am richer. I may have only 1 $50 note but the other guy may have a thousand $10 notes!
The HR lady understood my point and the conversation ended there. I thought to myself what would happen if that lady had quoted that to potential recruits of Morgan as example for why 'Morgan is the best'! It would be the fastest way the disprove that statement.
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