Application Of "Poison Pill Plan" From The Perspective Of Agency In Anti-hostile Merger And Acquisition

With the development of the economy,the scale of the company has gradually become larger,and the capital market has also become more active.Acquisitions and mergers have become a common phenomenon and an important driving force for the rapid development of enterprises.Among the massive mergers and acquisitions,there are many hostile mergers and acquisitions,and the capital market barbarians frequently appear.In order to resist the invasion of barbarians and maintain the stability of the corporate governance structure,the anti-hostile mergers and acquisitions strategies of listed companies are gradually enriched and improved.In the late 1980 s,a large number of "poison pill plans" appeared in the US capital market.The board of directors of a listed company issued an announcement to grant other shareholders except the hostile merger when the shareholding ratio of the hostile merger reached a certain level.The special rights allotment dilutes the hostile merger's equity ratio by way of share allotment,thereby blocking the hostile merger.At present,the "poison pill plan" is mainly used in overseas capital markets.The current domestic research on the "poison pill plan" mainly focuses on legal regulations,and there is a lack of research on the effectiveness of the "poison pill plan" itself.This article analyzes the reasons for the failure of the "Poison Pill Program" in the application by combining specific case events to explore the effectiveness of the anti-hostile merger and acquisition measures,and finally gives relevant suggestions to ues this strategy for anti-hostile mergers and acquisitionsThe analysis part firstly clarifies the motivation of the "Poison Pill Plan" in the case based on the case company's situation,to specifically analyze the expected effects of the implementation of the "Poison Pill Plan" and the reasons why the stakeholders support the plan;Secondly,based on the analysis of each motivation,by simulating the "poison pill plan" trigger,assuming the market reaction under the trigger to specifically analyze the "poison pill plan" "toxicity" strength and weakness,to determine its effectiveness in achieving motivation;This article also analyzes the intention of the M & A and the size of the M & A income from the perspective of the hostile M & A party to comprehensively determine the reason for the failure of the "Poison Pill Plan".According to the research results,suggestions on the use of "Poison Pill Program" are given.