Case Analysis On Gillette's Anti-hostile Takeover

In 1980's, the fourth merger and acquisition wave—hostile takeovers wave was popular in American, being the aim of M&A, Gillette company's four anti-takeover cases show us the way that a potential mergee protect itself from hostile takeover and improve the performance and management under the threaten of takeover. Chapter 2 introduces the fundamental situations of the fourth M&A wave of American, and the analysis of the main reasons that cause and promote this wave, such as the macroeconomic reason, microeconomic reason, political reason, law suit reason, finance and technology reason, etc. Chapter 3 focus on the introduction of Gillette's development track and all the four fights against the oppositions, includes the prices of offers, the reactions of the market, merger companies' attack and Gillette's replies. Chapters 4 to 6 cover the core issues and each chapter is the composition of the analysis of Gillette's success. In chapter 4, Gillette is valued with selected model, the free cash flow to the firm (FCFF) model. The calculated value of Gillette and its equity per share are compared to each time's offer price; in Chapter 5,the analysis of each year's financial ratios and the trend analysis of these data will show the inside adjustment programs and the achievement of them; Chapter 6 focuses on the outside relationships management that Gillette applied and the results of these behaviors.Chapter 7 is the environment analysis, includes the intention and the tactics of American federal & state government and law system during the period of the fourth M&A wave.Chapter 8 summarizes the anti-takeovers case of Gillette, shows the guidance meaning of this case, also the problems that existed in the government of American and the law system during that time.