Hostile Takeover

Paper Summary:

This papers examines the policies and situations in China and Germany regarding hostile takeovers in those countries. It looks at how hostile takeovers are becoming more popular and how the number is increasing on a global basis. In particular, it discusses a case in China where a foreign entity was able to gain a considerable market share of an entire sector, despite government controls to avoid such a situation. The Chinese Beer War is an excellent example of why governments need to devise strategies for protecting domestic companies from hostile takeovers.

Outline:
The Problem
Significance of the Problem
Company Self Protection
Government Protection Against Hostile Takeovers
Structure of the Thesis
Chapter I - Introduction
Analysis of the Methods of Hostile Take-Over
Types of Takeovers
Anatomy of a Takeover
Chinese Beer Wars
Alcan/Alcoa
Shanda and Sina
Sohu's Poison Pill
Germany's First Hostile Takeover
Conclusion

From the Paper:

"Hostile takeovers are not only a danger for the company that is being taken over, it can also pose a threat to national security. This is especially true in the face of a foreign hostile take-over. If the take-over occurs in a major business sector, it could have devastating effects on the economy. A foreign hostile take-over can be seen as foreign direct investment, which in many circumstances would be considered to be good due to the boost to the economy. However, in the case of a foreign hostile take-over, there is a loss of a domestic business. Therefore, the boost to the economy is negligible. Companies need to take measures to protect against hostile takeovers as a matter of national economic stability. "

Sample of Sources Used:

• "Anheuser-Busch Wins Bidding for Chinese Brewery" (2004). Money. 3 June 2004. USA Today. Accessed 22 May 2007 from http://www.usatoday.com/money/industries/food/2004-06-03-china-brewer_x.htm.
• CBR Staff Writer (2005). Shanda poised for hostile takeover bid of Sina. 23 February 2005. The Chronline. Accessed 23 May 2007 from http://www.cbronline.com/article_news.asp?guid=612C6FC4-9F8F-4057-83E8- 10CA399A7B7A
• ChrStaff Writer (2006). Motorola and Shanda enter mobile gaming partnership. 31 July 2006. Chronline.com. Accessed 24 May 2007 from http://www.cbronline.com/article_news.asp?guid=FDFDBB3C-5743-4561-8700- 16F73AC1BA9E
• Conte, M. (2007). Alcan rejects Alcoa's hostile takeover bid. 22 May 2007. Accessed May 28 from http://fe69.news.sp1.yahoo.com/s/afp/20070522/bs_afp/canadauscompanymetals_070522 210801
• Creed, A. (2001). Sohu.com Girds For Hostile Takeover - Company Business and Marketing. 30 July 2001. Newsbytes News Network. Accessed 20 May 2007 from http://findarticles.com/p/articles/mi_m0NEW/is_2001_July_30/ai_76849287

More papers on Hostile Takeover:

• Case Study # 104695 : "Oracle's Hostile Takeover of Peoplesoft"
• Essay # 33455 : "Hostile Takeovers"
• Research Paper # 130130 : "Hostile Takeovers and Post-Deal Stock Price"

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