Effect Of M&A Reorganization Between Vanke And Shenzhen Metro Upon The Small And Medium Shareholder's Equity

The shareholding warfare between Baoneng and Vanke in October 2015 became a hotspot event for the public.Vanke was to initiate a merge and acquisition process with Shenzhen Metro as a defensive move against Baoneng,which became a core event during the warfare.As capital market grows,merge and acquisition initiators vary,having an extensive coverage.And trading methods become diversify.At different development stages,a company would have different ways of merge and acquisition,which would have a different influence on the company and its shareholders.However,medium and minority stakeholder would bear more impact naturally.This paper is focused on the impact of those medium and small investors and how to secure their rights and interests from system perspective.This paper aims at the merge and acquisition case between Vanke and Baoneng,trying to analyze the reason,the number of payment,the choice of payment method,the process and the result behind the case.And the author carefully studied on the impact that the case had to medium and small stakeholders.During one year's time,from Vanke initiated the merging all the way to the end,Vanke experienced a 198 days of suspension of their A share.Eventually,the former biggest shareholder of Vanke,China resources holdings cooperated with Shenzhen Metro via exchange of shares,making the latter became the new biggest shareholder of Vanke.we analyzed the impact that this case had to medium and small investors from three perspectives: the market reaciton;the perspective of financial;and the asymmetry information.From our analysis,we believed that bidder stocks as payment between Vanke and Shenzhen Merto brings the passive influences in market,instead the transfer of stocks under agreement brings the positive influences in market.Vanke choose the most expensive way to pay the price of M&A,just to protect the control of the company,It's deteriorating the medium and small investors the same as the asymmetry information.The papers started from the perspective of constraining the company governance system,offered some advice to protect the Right of Public Knowing,the decision-making power of medium and small shareholders.Up to now,few papers have studied the rights of medium and small shareholders from the concrete actions of corporates and the merge and acquisition between Shenzhen Metro and Vanke provided us a representative case to study upon.This paper provided specific evidence to past studies and also o ered suggestions and advice on perfecting the protection rights of medium and small shareholders.This paper has its significance on perfecting the laws and regulations,as well as the rights and interests of medium and small shareholders.