Analysis of Hostile Merger: Evidence from Bao-Wan Controversy

Abstract

As a matter of fact, with the rapid development of enterprises in China, the merger is indispensable during the boosting of the economy, but many of them are not smooth, both sides are not satisfied, and even contradictions. On this basis, through the analysis of the case of Baowan dispute, this study obtains the impact on the acquireee when a hostile takeover occurs. According to the analysis, it is easy to find that hostile takeover will affect the development of the company, but it will show a slight upward trend in the early stage of the takeover. At the same time, the implications as well as suggestions will be proposed based on the evalutions. To sum up, the study can help the company to anticipate the impact of the acquisition and anti-acquisition, so as to facilitate the company to make preparation and prevention in advance. Overall, these results shed light on guiding further exploration of hostile merger analysis.