rnment is an opportunity for the development of the real estate industry. This industry faces consolidation and shuffle, which is good for the healthy developmentof low gearing large real estate companies to get better external environment development.
After a nearly two-year rising, the value of China's stock market reached a record high in 2015 and began to beunilateral downward. Then because of enduring twice crash of stock market, it returned to the bottom, with many low P/E and undervalued enterprises out of the market. Vanke, as a leading enterprise of real estate industry, becomes one of the sign of industry rebound, which means it is an undervalued enterprise. Because of its special equity structure, there is a big play show of merger and anti-takeover in the secondary market going on.
With the development of China's financial markets in recent years, relevant laws and regulations are gradually improving, especially the law and regulations about strengthening the supervisionand execution in the deleveraging of 2015, making China's financial markets morelegalization and fairer. The case of merger and anti-takeover between Baoneng and Vanke is proceeding under this kind of financial environment.
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5.2 Lessons and Recommendations
Most listed enterprises in China has a dominant shareholder who has the percentage over 30%, some even reach 70%. This kind of stock structure leaves company many potential problems and becomes one of the roots of many issues in China stock market. For example, under this stock structure, the dominant shareholder can decide everything in the company no matter it is right or not and minority shareholders do not have any discourse power. Or some enterprises become the cash machines to the dominant shareholder, minority shareholders’ right don’t have any protection. Precisely because the depravity of this mode, China stock market split Share Structure Reform and hope this situation will be improved.
Vanke is under the dispersion stock structure among the limited numbers of this kind of enterprises on A-Share. This guarantee minority shareholders’benefit, but Vanke should prepare some protection to measure on its control right and discourse power at the first place. The only way to make that hostile-attempt company shrink back is to be initiative all the time. Along with the development of Chinese Financial Market, this kind of M&A will be increased, we should keep justice and objective perspectives and regard them as the investment activities and achieve the purpose of our study.
6Reference
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[3] Chatterjee,Sayan. Sources of Value in Takeovers: Synergy or Restructuring Implications for Target and Bidder Firms. Strategic Management Journal.1992,13(4):257-282.
[4] Clarke Christopher J.Kieron Bre
