The First Billion

"So you choose your clients?"

"I prefer to think that we choose each other. Hopefully, bringing Mercury public will be the first step in a long relationship between our two groups."

"So you wish to work with Mercury? You are sure?" Kirov's amused tone indicated he hadn't heard this approach before and just might be buying into it.

"It would be a privilege. And I think I can promise that in the current environment, Black Jet could insure that a Mercury offering would be a home run."

Kirov nodded approvingly. If nothing else, he looked to be enjoying the courtship. He questioned Gavallan about Black Jet's ability to manage so large an offering, its relative inexperience in working with international companies, and its commitment to supporting the stock once it began trading. He asked about Black Jet's analyst, inquiring whether he was on Institutional Investor's first team (he was, at a salary of four million a year!), and was curious to know if the larger funds would be buyers of the stock, meaning if they would look to build a long-term position in Mercury.

In short, he asked all the right questions. Either he'd been briefed by his chief financial officer or he'd already sat through a dozen of these pitches.

Gavallan addressed each of Kirov's concerns in turn. Knowing he was at a disadvantage to the bulge bracket firms, which could commit a sales force double the size of his own to the IPO and promise a hundred-million-dollar kitty to keep the float active, the stock price above water, he concentrated on Black Jet's strengths: its topflight research team; its position at the vanguard of the new economy; its close ties to the nation's largest mutual funds. In the end, though, it came down to personality. Everybody on the street was offering the same services, more or less. It was a question of whether Kirov liked Miss August or Miss November.

At the close of Gavallan's comments, Kirov placed his hand atop the American's and gave it several pats. "I have received advice from people close to me- people I trust- that you are good man. That your company may soon be very big, very powerful. Like Mercury, I think." Another pat to let him know they were on good terms. "I like you, Mr. Gavallan. You are young. You are ambitious. I sense you are honest, even if you are arrogant." He laughed quietly. "You choosing your clients. Very good. I must remember to use that myself one day. But I must have a reason to explain to my own shareholders why I choose your company. We, Russians, like big names. BMW, Gucci, Rolex. We feel we must carry these brands with us to prove our legitimacy. Again our inferiority complex; excuse us. But if I may speak frankly, Black Jet is not yet such a big name."

"You're right, sir. We have only nine years behind us. I hope many more will follow."

"I am sure of it. Absolutely positive," Kirov declared collegially, but the next moment he was wincing, lowering his eyes. The reassuring hand returned to its owner's armrest. "But so much is at risk. It is a critical moment for my country. For so long, we have been held back, our heads pressed beneath the water. Now that we are free, I fear we are terribly greedy. We want to suck in great mouthfuls of this oxygen we call liberty. We claim democracy as ours. We crave progress. Personal progress. Progress measured on the human scale. A phone for every house. Ru

"You see, technology is our lifeline to the West. We ca

Gavallan found he was breathless, too. Kirov had spoken into his heart. He had addressed all his unsatisfied selves: the conscientious benefactor, the penitent si

The Russian fixed him with a challenging gaze. "Do you believe, Mr. Gavallan?"

"Yes," said Gavallan, without hesitation. "I do."

Kirov said nothing for a few seconds, his black eyes burning into Gavallan. He had the gift of silence, of dignifying thought for thought's sake. Just then, he noticed the cigarette and rushed to put it out. He smiled, embarrassed, and the evangelist became once more the man. "I'm sorry to say you have put me in a difficult position," he said. "I have very much enjoyed our chat, but I have a late di

Gavallan sighed as he scooted toward the edge of the chair. Pitch over. Business lost. Next. Despite himself, he acknowledged a jab of disappointment and had to sit straighter to keep his shoulders from sagging. He knew he had had no right to count on wi

"Don't let me keep you," he said. "I'll be in the office tomorrow if we might answer any questions for you. If you have a free hour, I'd enjoy showing you around the firm." He rose. "But, Mr. Kirov, I want you to know one thing."

"Yes?"

"I do believe."

Kirov rose from the chair, but a moment later sank back down into its cushioned folds, motioning Gavallan to sit. "I will make you proposition, Mr. Gavallan. We are close to finishing the buildout of our central Russian operations. Kiev, Minsk. These are large cities; maybe a hundred thousand subscribers each. Unfortunately, we need fifty million dollars to complete the construction."

"Fifty million?"

"I am thinking a loan to be repaid from the proceeds of the IPO. It is uncommon?"

"Not at all," said Gavallan, unable to keep the excitement from his voice. Part of him wanted to jump at the chance, another to take a step back. A fifty-million-dollar loan would exhaust Black Jet's resources and leave it perilously exposed to the market's vagaries. It was a tremendous risk. Yet, the fees the deal would bring promised to be tremendous, more than anything Black Jet had ever earned on a single transaction. Add to that the interest on the loan, and of course the prestige… My God, Gavallan said to himself, the prestige alone would do wonders for the company.

He looked at Kirov, doing his best to size him up. The personality contest went both ways. The man was controlling, vain, and at least a little bit of an egomaniac. But his conceit was his strength. How else could he muster the energy, the dedication, the tenacity to build a company like Mercury? Who but the vainest sort of individual would dare talk of aiding his country in such grandiose terms?

Gavallan turned his thoughts to the bigshot flying in from the Big Apple on his big Lear or big Cessna or big Gulfstream. Inside, he smiled. It was a delinquent's smile, an outsider's smile, and it reveled in the pique and fury and disbelief that the overconfident executive would feel when he learned that Black Jet had won the two-billion-dollar mandate to bring Mercury Broadband public. Nothing came easier to a Texas farmboy than spitting in the eye of his betters.