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fault. Its main product, wallboard, had been in less demand as housing construction had declined sharply. However, the company had not been helped by the actions of its chairman and 30 per cent owner, Nat Morrison. He had borrowed heavily to build factories which were now operating at half capacity. He had also fired a succession of chief operating officers over 'policy' differences. As the company's earnings had turned to losses, the prices of Gypsum's shares and bonds had fallen sharply. The market thought there was a strong likelihood the company would not survive.
    The company had received a number of overtures from large conglomerates, looking to buy its modern factories cheaply in preparation for the upturn in the economy which must eventually occur. But Nat Morrison would not give up his chairmanship. And no buyer in his right mind would want the company with Nat Morrison in charge. But, since his support was crucial for any takeover to succeed, none could occur, and the company's position continued to deteriorate.
    Then, going through the press reports, I came across a headline dated about a month ago: 'Wallboard King dies in Helicopter Crash'. 'Wallboard King' was perhaps a flattering term for Nat Morrison, but it did mean him. He had died in his helicopter whilst visiting one of his factories. I read the reports of the next few days closely. Not surprisingly, the share price had risen 10 per cent on the news. He had apparently left his money in a trust. His son, a successful Chicago lawyer with absolutely no interest in wallboard, was the trustee together with a local bank president.
    I stood up from my cluttered desk, and wandered over to the window. I stared at the silver line of the Thames cutting its way through the tall black and grey buildings of the City, past the more sedate St Paul's Cathedral and Houses of Parliament and on towards the squat lump of Battersea Power Station. Why was Cash bidding so high for the bonds? Who was the ultimate buyer? And why?
    With the old man Morrison gone, a takeover would be a possibility, especially since a lawyer and a banker would be more likely to see the financial sense in the sale of the family firm. I supposed that if Gypsum were taken over by a sounder company, then the bonds would move up in price. But a takeover was far from certain, and the company could easily go bankrupt in the meantime. If a speculator wanted to gamble on a takeover, it would make more sense for him to buy the stock, which could easily double. In comparison, however strong the acquiring company was, the bonds would always be redeemed at 100, which was just a 25 per cent profit on the price of 80 which Cash was bidding.
    So who would want Gypsum bonds? Perhaps the company was buying back its own bonds cheaply? No, Gypsum didn't have the cash.
    I watched a barge push its way under Blackfriars Bridge.
    Of course! There was only one logical buyer! Someone was about to take over Gypsum. But before they made their intentions known to the market, they would gather as many Gypsum bonds at a discount as they could. There were $100 million Gypsum bonds outstanding. If they could buy them at an average price of 80, then that 25 per cent profit when the bonds were redeemed would be worth $20 million, a significant sum. The more I thought about it, the more I was sure that this was the most logical explanation. To work!
    I strode back to my desk. I called David Barratt. 'Harrison Brothers,' I heard him say.
    'David, have you heard of an issue for the Gypsum Company of America?' I began.
    David had an excellent memory, and knew the details of most of the bonds still in existence.
    'I certainly have,' he said. 'The 9 per cents of 1995. Last I saw, they were trading at 65, but that was six months ago.'
    'I wonder if you could get hold of five million dollars for me?' I asked.
    'It's going to be difficult,' David said. 'The issue hardly ever trades. I'll see what I can do.'
    I put the phone down. Debbie, as