Analysis Of The Effectiveness Of Anti-takeover Measures

M&As(Takeovers)are playing a significant role in promoting capital market development.As for the different parties concerned,the utilities brought by the M&As(Takeovers)differ.Usually,it is part of acquirer’s strategic development with positive utilitis but it opens to discussion for the target company.Thus,anti-take over measures will be adopted by the target company to safeguard its legistimate rights and interests in normal conditions.This thesis will study the M&As models as well as anti-takeover measures employed both in China and the US to find out which of those can be made good use for companies including Vanke in China.Drawing references form historical experiences,many anti-takeover measures can be applied by Vanke to safeguard its interests including stock purchasement,management buy-out,“white knight” or seeking for legal aid.During the whole process of Vanke’s anti-takeover,it turned out there’s limited room for Vanke to play its role in defending hostile acquizations.The root cause behind that is the management team missed the ideal time to play their role.However,the inspection on insuers from related regulators boded well for Vanke.It can be conluded that the effective monitoring from related regulation arms may excel other measures and become the last straw to aid the company to survive.Beyond that,the equity context in Vanke also propels the development in China’s capital market as well as pushes the related government bodies to improve regulations.Based on the analysis of varying takeovers models and anti-takeover measures,this thesis will try to explore the factors behind and the sort out the appropriate models which may apply to the capital development for China.As a landmark among hostile takeovers as well as a case which came to an end with Vanke beating “the barbarian at the gate”,it is of significance to explore the anti-takeover measures behind the equities context as its boasts significance both to Vanke itself as well as other listed companies with overdiversifying shareholder structure.Comparing takeover models as well as anti-takevoer measures in a horizinal and vertical manner will help companies to explore the appropriate ways to shay away from hotile takeover.