Vanke Control Battle:Hostile Acquisition Or Normal Market Behavior?

The battle for control of Vanke caused a great disturbance in the capital market of our country.Some people support the acquirer,because the acquirer brought some benefits to the investors;Vanke's management also got many support,because they've made a great contribution to the development of the corporation.It should be said that if we look at the problem from a different perspective,we will come to different conclusions.This article is standing in the perspective of the general investors(not speculators),if the acquisition benefits the long-term development of the company and the investors,then we regard it as normal market purchase behavior;If it's harmful to the benefits of the investors and the development of the company,then we regard it as “hostile takeover”.At first,this paper is to introduce the research background,purpose,significance and possible innovation,and introduces the main research content.The battle for control of Vanke lasts very long,and made a great impact on the capital market of our country.But if we want to treat this event correctly,then we need to determine the nature of the event,and this is the research purpose of this article.Next,we will introduce the equity dispersible corporate governance theory--the modern enterprise theory.As a modern company,its governance should include the internal governance structure and external governance structure.The internal management is made up of the general meeting of shareholders,the board of directors,the board of supervisors and the senior management.The external governance structure include the capital market,the manager market and the product market.Through the introduction of the theory,our analysis of the event have theoretical basis.Then we will valuate the stock of Vanke,our valuation model include absolute valuation model and relative valuation model,so we can get an integrated judge to the value of Vanke's stock.Then we will analyze the reason for the event,this chapter will mainly introduce stock's market value and it's intrinsic value deviation phenomenon,Vanke's management's behaviors and the enquirers' motivation,so we can understand why Vanke became the target of the acquisition.Next,we can determine the nature of the acquisition.From the investors' perspective,the judgment standard is whether the acquisition would benefit them.So we will analyze Vanke's management and Bao Neng's management,decide which one is better for the development of the company and the investors,then we can concluded the nature of the battle for control of Vanke.If it's really hostile takeover,then we will suggest some Anti takeover strategy.Finally,the paper will summarize the full text.