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dc - How was Bruce Wayne able to reclaim control of Wayne Enterprises in Batman Begins?



In Batman Begins, after Bruce Wayne's extended absence, we learn that Wayne Enterprises has had him declared dead, and that all of his assets have been transferred to Alfred as per his will.


We also learn that Wayne Enterprises is being taken public.


So, how is it that Bruce Wayne was able to buy back all of the shares of Wayne Enterprises that were offered for sale?


Typically billionaires like the Wayne family do not have that much cash sitting around (oh, they still have a lot of cash, but unlikely to have billions of dollars in cash) - their value comes almost entirely from their privately held shares in their company.


So how is it that Bruce Wayne is able to buy a controlling stake back into Wayne Enterprises? In the movie itself it's really just given a hand wave of "Complicated things you wouldn't understand".



Answer



My understanding is that, due to the fact that Bruce has been declared dead Mr Earle is able to turn the company from privately held to public, by selling shares. This means that the participation of the Waynes in the company (whatever % it was) is ignored and the control of it goes to the board (he would be "forcing out" the Waynes from their own company, but the thing is that there is no Waynes to control the company). Then Earle is able to make this move.


But Bruce still has money when he comes back, even in the process of coming back from the dead. Probably because Alfred was left not only as legal guardian of Bruce, but also as legal executor of the Wayne's will and assets. That is the same money Bruce uses to "buy hotels" and pretend to live like a playboy.


It seems actually form the conversation between Bruce and Alfred on the plane back to Gotham that Earle just was able to declare Bruce legally dead and go ahead with this plan:




Alfred Pennyworth: Well, actually it was Mr. Earle, he's taking the company public. He wanted to liquidate your majority shareholding. Those shares are worth quite a bit of money.


Bruce Wayne: Well, it's a good thing I left everything to you, then.


Alfred Pennyworth: Quite so, sir. And you can borrow the Rolls if you like. Just bring it back with a full tank.



So, Bruce Wayne uses his own money to buy back his family's (former) company through the shares. He uses the money that the Wayne family still has and Alfred, as legal executor of the Wayne's will was keeping, to buy enough public shares to become the owner again (With a majority of the shares of a company, at least 51%, you become the owner of the company.).


The tricky parts would be:




  • Bruce loses a lot of money, because he is forced out from his own company when he is declared legally dead. I'm unsure if he would be to see any money form the sale of those shares.





  • He would have to use a LOT of money, to buy at least 51% percent of the company, but it seems that Alfred kept the money, and the Wayne fortune is in the billions of dollars, so no big deal (suspension of disbelief on how rich Bruce Wayne is).




  • Bruce says he bought "through various charitable organizations". Probably he did so to go below Earle's radar when buying the company, but by doing it this way he would be needing even more money. My guess is that it could be like in a takeover bid. Lets say that Leslie Tompkins' clinic buy X shares, and then re-shells them to Bruce (for the same or higher price). This could have the handy effect of the hostile takeover (Bruce could not be allowed to buy more than a certain % of the shares, but by buying from third parties he might be able to overcome this restriction).




Earle offered the excuse of "Complicated things you wouldn't understand" to Bruce because he considers Bruce a fop and thinks he can humor him and go ahead with the plan. Also, probably Bruce doesn't have time to be declared "legally alive" again soon enough to stop the company going public. But Bruce's playboy façade works well and is able to go below Earle's radar when making his move and buying the majority of shares and regain control and ownership of the company.


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