Hostile Takeover And It’s Impact On The Value Of Target Companies

With the improvement of the degree of financial capital to participate in the market in China,as well as participation in the diverse and flexible way,the resulting market purchase behavior has increased,and led to a variety of new way of acquisition,this paper involves the hostile takeover,for example,in the market,the capital market in China in 1993 the first hostile takeover-"treasure continuation of the turmoil",equity division reform in 2006 made the controlling shareholder holdings,increasingly dispersed ownership structure of listed companies,combined with the status of the Chinese stock market tumbled in 2015,the target company’s stock value has generally been declining,and in the accumulation conditions,In addition,the market for mergers and acquisitions fund development is relatively abundant.After 2015,China’s capital market ushered in the wave of equity competition,and hostile takeover events hit a new high in number and frequency.On the theoretical research,the domestic numerous research literature write about the hostile takeover,and give the advice about antitakeover strategy base on more events,no objective view this capital phenomenon hostile takeovers in site,and the capital market in China in recent years the situation of frequent equity competition and hostile takeover did not ease,perhaps from the side shows the events of the hostile takeover is one of the capital market to develop in the direction of mature accompanying phenomenon,so the events of the hostile takeover the motivation,strategies and its influence has the vital significance.This article selects Zhejiang United Investment buy ST ZXB as a case,adopt case study as the main research methods,combined with the event study method,from the perspective of a hostile bid for its hostile takeover motivation,in the process of acquisition strategy,and the result of acquisition of influence on the internal and external aspects of the target company,and then analyze the impact of the value of the company.Investment for acquisition of ST ZXB compared to other three other acquisition strategy can greatly improve the success rate of hostile takeover bid strategy,case analysis shows that,as long as the buyer in advance of hostile takeovers to do due diligence,make sure good offer to use in the process of the analysis of the timing and control good offer specific key factor involved,so can improve the use in a hostile takeover bid strategy achieved success.From the perspective of the acquisition results,the acquisition of ST ZXB by Zhejiang United Investment is one of the rare cases in China’s capital market in which the hostile takeover is successful and the acquirer finally gains control of the listed company through market competition.Based on the case analysis of the hostile takeover of ST ZXB by Zhejiang United Investment,this paper draws relevant conclusions.Secondly,the short-term capital market of hostile takeover has a positive reaction,which improves the value of the target company in the short term after the announcement of hostile takeover.Finally,after analyzing the indicators related to the corporate governance structure and corporate value of ST ZXB after the completion of the hostile takeover,this paper believes that the hostile takeover of ST biochemical by Zhejiang United Investment has also brought long-term value growth to the target company.The acquisition of ST ZXB case by Zhejiang United Investment has a reference significance for the study on the strategic use of hostile takeover and the impact of corporate value.Meanwhile,the results of the case study also enrich the relevant theories of hostile takeover practice,corporate governance and corporate value in China.