On The Hostile Takeover And Its Legal Regulations

Hostile Takeover has always been one of the hottest issues in economic filed.Economists predict that hostile takeover will develop much more rapidly in the firstten years of the 21st century. As to the rising capital market of China, hostile takeoveris rather a new concept and of great significance at present, in the meantime, there arestill a lot of hostile takeover-related problems need to be resolved to perfect the legalsystem. The above is the reason why I choose this issue to write my graduationpaper------"Hostile Takeover & Related Regulations". This thesis conducts the studyin a comparative and economic approach and concludes that with the gradualperfection of our legislation, hostile takeover shall be encouraged. The thesis consistsof four parts as follows: The first part is the general introduction of hostile takeover. As hostile takeovercontains public-offer purchase and centralized bid purchase, my thesis mainlydiscusses public-offer purchase. Compared with Friendly purchase,Contract purchase,the features of hostile takeover are stressed. Moreover, I also introduce the conditionsand operations of hostile takeover in this part in order to clarify the concretecircumstance under which hostile takeover exists. The second part discusses the cause and value of hostile takeover. I explain thecauses in two aspects: domestic& abroad; then I analyze the function of hostiletakeover in terms of running corporations in USA,UK & Germany; I also illustratehostile takeover in China through comparing it with Contract purchase and finally Iget the conclusion that although hostile takeover has its own flaws, we still need tosupport it in China. The third part focuses on the laws and regulations of hostile takeover. In this part, Iintroduce the status quo of hostile takeover legislation in developed countries and inChina, and make comments on different types of laws and legislations. The fourth part ponders over the hostile takeover legislation in China. I mainly putforward suggestions on three aspects: the "concert party" system,anti-purchasesystem and measures in solving the systematic defects.