China's Listed Companies Tender Offer Pricing

In the modern society, as a result of the intense market competition, the mergers and acquisitions (M&A) become more and more frequent between enterprises. The initial M&A was often achieved through the private transactions of shareholders, but this kind of M&A had the possibility to harm the other young shareholder's benefit, so tender offer then arised at the historic moment. Regardless of its pattern innovation for listed company, its marketable behavior to promote M&A between listed companies, or the guidance and the encouragement to strategic M&A and the large-scale industrial conformity, tender offer has the remarkable positive sense to the healthy development of stock market in China.However, none of the true tender offers have happened in our stock market since the Nanjing Steel tender offer in 2003.The key problem is that the price of tender offer is unreasonable. This paper begins with the concept and content of tender offer, analyses the tender offer cases in our country, summarizes the characteristic and limitation of the price of tender offer, and finally improve the lowest pricing method on the non-circulation stock and the circulation stock separately on the base of the analysis of the company value estimate method. The purpose of these is to promote the marketability movement of tender offer in our country.