Entity Dossier
Company
CSL
Strategic Concepts & Mechanics
Strategic PatternFlanking Around Entrenched GiantsIdentity & CultureLoyalty Bought with Friday PaychecksRelationship LeverageBoard Seats as Reconnaissance PostsCornerstone MoveSell the Company to Itself — Internal Reverse TakeoversCompetitive AdvantageClassified Stock as Control MultiplierCornerstone MoveFind the Key Man and Close Before CombatOperating PrincipleCash Business Preference from Bus RootsStrategic PatternConcentrated Diversity Over Grab-Bag PortfoliosSignature MoveWin Small, Consolidate, Then Leap GeometricallySignature MoveWallpaper-Roll Planning Then Relentless PressureCornerstone MoveBuy Cheap Shells, Strip and Reload the PortfolioOperating PrinciplePool-of-Light Negotiation TheaterRelationship LeveragePolitical Access Without Political OfficeSignature MoveDebt as Temporary Tool, Never Permanent FoundationCapital StrategyDividends as Upward Cash EscalatorSignature MoveChief of Staff Handles Architecture, Boss Handles VisionDecision FrameworkAcquire Capacity, Never Build in InflationSignature MovePocket the Stake, Play with Winnings Only
Primary Evidence
"CSL, on the other hand, had borrowed a good portion of the $70 million cash it had paid to Power, essentially assuming the debt Power incurred to purchase csl. Because csl was an operating company with income from operations, it could write off the interest on the debt against income and reduce its taxes. The same could be done with the interest it paid on the debentures given to Power. The reduced income taxes meant higher retained earnings and, consequently, higher dividends for shareholders, in this case, Power."
Source:Rising to Power - Paul Desmarais & Power Corporation