Abstract:
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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. |