Royal Bank of Canada

Strategic Concepts & Mechanics

Strategic PatternFlanking Around Entrenched Giants

Identity & CultureLoyalty Bought with Friday Paychecks

Relationship LeverageBoard Seats as Reconnaissance Posts

Cornerstone MoveSell the Company to Itself — Internal Reverse Takeovers

Competitive AdvantageClassified Stock as Control Multiplier

Cornerstone MoveFind the Key Man and Close Before Combat

Operating PrincipleCash Business Preference from Bus Roots

Strategic PatternConcentrated Diversity Over Grab-Bag Portfolios

Signature MoveWin Small, Consolidate, Then Leap Geometrically

Signature MoveWallpaper-Roll Planning Then Relentless Pressure

Cornerstone MoveBuy Cheap Shells, Strip and Reload the Portfolio

Operating PrinciplePool-of-Light Negotiation Theater

Relationship LeveragePolitical Access Without Political Office

Signature MoveDebt as Temporary Tool, Never Permanent Foundation

Capital StrategyDividends as Upward Cash Escalator

Signature MoveChief of Staff Handles Architecture, Boss Handles Vision

Decision FrameworkAcquire Capacity, Never Build in Inflation

Signature MovePocket the Stake, Play with Winnings Only

Cornerstone MoveSlip In While Giants Fight

Competitive AdvantageBoom-Sensing Before the Crowd

Signature MoveRelated-Party Deals as Control Ratchet

Decision FrameworkUnsentimental Exit Discipline

Signature MoveHire the Best Then Stay Out of the Way

Capital StrategyCorporate Structure as Weapon

Signature MovePrivate Until Capital Forces Public

Signature MoveArt Buying While Empires Burn

Strategic PatternCrash as Shopping Spree

Identity & CultureLoyalty Through Generosity Not Hierarchy

Cornerstone MoveDebt Down, Equity Up, Control Tighter

Primary Evidence

"At the end of April, Investors issued 3,000,000 voting common shares to the parties that provided $36 million of the financing for the Great-West share purchases: Power Corp., Canadian Pacific Investments, James Richardson & Sons, Canadian Imperial Bank of Commerce, the Royal Bank of Canada and Peter D. Curry (one of Power’s senior executives and a key Desmarais advisor). Then, in early May, Investors offered 1,600,000 cumulative redeemable convertible preferred shares at $25 each to raise the remainder of the financing costs. By the end of the transaction, Investors owned 50.1 percent of Great-West Life bought for $70.8 million (including costs). In turn, Investors issued stock worth $76 million to finance the acquisition and its costs. Also, 10 percent of Investors had been acquired by Great-West, one of the conditions of acceptance championed by Kil- gour, so that Great-West wouldn’t appear simply to have been ab¬ sorbed by Investors. And Desmarais, through Gelco’s control of Power, which had 30.1 percent of Investors, was in an influential position to guide Great-West Life in new, profitable directions."

Source:Rising to Power - Paul Desmarais & Power Corporation

"Stokes had raised a loan from the Royal Bank of Canada to fund the radio venture. He and Treasure prepared a three-year business plan with projected earnings. It was a nervous wait."

Source:Kerry Stokes

Appears In Volumes

Rising to Power - Paul Desmarais & Power Corporation Kerry Stokes