Hostile takeover case study: analysis of the ase's takeover of rival spil
Tutor / director / evaluatorShyu, Jonchi
Document typeMaster thesis
Rights accessOpen Access
The Mergers and Acquisitions (M&A) market represents an important aspect of the corporate environment. Mergers, acquisitions, and takeovers have been a part of the business world for centuries. Nowadays, companies are often faced with decisions concerning these actions due to the job of management is to maximize shareholder value. In any case, far from being common, in Taiwan has been few cases of hostile takeovers. However, the most famous one is happening currently and is being a complex issue. The aim of this study is to analyze for the financial and the strategic point of view the ASE’s hostile takeover against SPIL and propose best solutions to all the players involved. The financial analysis is split into two parts: the Financial Statements Analysis that compares the financial situation of both companies with the financial ratios of them, and the Stock and Synergies Valuation that provides an opinion of the intrinsic value of SPIL and estimate the value of the operating and financial synergies that can create the merger. The strategic analysis provides a broad range of lobbying strategies that have SPIL and ASE to try to attack or defend in the future of the issue. Also, the role of the FTC is analyzed to know the importance of it in the future result of the takeover. Finally, it is given some suggestions, justified in the results of the analyses, in order to help to each company to choose the best option for solve the current situation.