Anti-takeover Measures The Company's M & A Activity

As the Chinese economy is growing rapidly these years, there is a great increase in the number of corporate merger and acquisition. Buyouts have become an effective way for the expansion of Chinese companies. Since the first cartesis which took place in 1993, the buyouts in China have increased vastly each year. Though most of the present Mergers & Acquisition happened in China are friendly takeovers, the hostile takeovers are on their way in China as a result of the split share reform. Thus, the Chinese enterprises are more and more confronted with severe threats from hostile takeovers. Therefore, it is necessary for companies to take anti-takeover measures to survive. By investigating the foreign acquisition experience and operating evolution game theory, this paper shows that there are two evolutionarily stable strategies for both sides involved in an buyout in a well-developed acquisition market. On the basis of that, the paper gives some further study on the buyout behavior from both institutional and technical angle. Finally, the paper makes some useful suggestions for the Chinese anti-takeover institution.