The Protection Of Target Company Minority Shareholders' Interests In The Tender Offer Of Listed Company

In recent years,more listed companies tend to achieve rapid development through some forms of merger and acquisition with the constant change of market environment and the deep reform of economic system in our country.Negotiated acquisition is now one of the most mainstream acquisition methods.But the lack of effective information disclosure in the traditional negotiated acquisition will lead to some unfair problems,and the interests of minority stockholders in listed companies are always impaired.While the tender offer is a fair,just and open acquisition form compared with the traditional negotiated acquisition.Its biggest feature is all shareholders can be issued offers from the acquiring firm publicly which embodied the principle of transparence and selfdetermination of shareholders during the acquisition process.It becomes possible that the minority stockholders of the target company exercising their rights to protect their own interests actively.Therefore,this paper aims to study the behavior of minority shareholders of the target company in the tender offer,the impact of tender offer on both short and long term performance of the target company,analyzing whether the tender offer can eliminate the factors that hinder the minority shareholders to exercise actively and how can the tender offers protect the interests of the minority shareholders of the target company?The research in this paper is based on the theoretical study of the tender offer,combined with the successful case of the ZUIG Investment offered the ST Shenghua stocks,using the case studies,event analysis in combination of qualitative and quantitative methods.The paper analyzes whether interest of the minority shareholders in the target market can be protect during the tender offer progress and after the acquisitionIn this research,we found that:(1)Compared with the agreement acquisition,the tender offer has higher requirements for information disclosure,and lower costs for the minority shareholders of the target company to exercise their powers,which helps them protect their self-interests.(2)The tender offer event has a positive impact on the performance of the target company in the secondary market,which makes the minority shareholders of the target company getting compensation from the secondary market.(3)In this case,the long-term performance of the target company increased compared with the previous period after tender offer acquisition.Therefore,the tender offer also has a positive effect on the development of operations in the target company,which increasing the value of the company,creating value for shareholders and protecting the interests of minority shareholders of the target company.