Research On The White Knight As An Anti-takeover Strategy

In recent years,the topic of China's securities market are almost all around the "hostile acquisition",and the most typical example is the stock battle between Baoneng conglomerate of which Yao Zhen Hua is the actual controller and the leading enterprise in real estate industry-China Vanke Co.Ltd.Baoneng conglomerate became the first majority shareholder by means of increasing the holdings of common share in secondary market at the end of 2015 in a few short months.Represented by Wang Shi,Vanke management shows the Baoneng conglomerate unwelcome attitude on the table and in early 2016,the introduction of "white knight",are intended to cooperate with ShenZhen metro,let the Shen Zhen metro replace the Baoneng conglomerate to be the first majority shareholder.The two sides struggled until January this year when China Resources decided to leave the company and transfer the equity to the local state-owned ShenZhen metro.At the same time,Hengda also publicly stated that it had no intention of adding equity,and this is the end of the battle.However,the "white knight" as the anti-takeover measure of Vanke has become the focus of all parties.This paper attempts to combine theoretical analysis with case analysis to discuss the operation principle of white knight,and combine with the situation of when the territory of China,the United States and Taiwan meet a hostile takeover of listed companies,using the white knight's actual situation.Using the method of comparative study in the United States and Taiwan white knight related legal rules,giving suggestion for the future of our country completing white knight anti-takeover measures.