Case playback:

　　A Limited by Share Ltd is a large Chinese food industry group, including the core business of modern agriculture, food manufacturing industry and trade industry chain. B Limited by Share Ltd is a French yogurt maker, the global second big brands of milk products. D Limited by Share Ltd is the world's sixth largest food company. At the end of 2010, the C fund shareholders prepare 50% transfer of shares held by B company. In 2011 February, A made a non-binding offer the most competitive, well into the second round of bidding procedures. In order to improve the success of the project, A company sent a project team in March 7th, France and B management of the company, shareholders, government, media and other stakeholders to communicate, and negotiating business plan, ownership structure, corporate governance and other content, to a certain extent reversed early weakness bidding. In March 22, 2011, D Limited by Share Ltd to avoid litigation, improve the franchise fee for conditions, in order to lower than A company offers nearly 6% of the amount of B 51% stake in the company.

　　Intensive analysis:

　　M & A activity is both rational behavior results, both the acquirer or target enterprises have the motive and purpose. The agreement in the form of mergers and acquisitions, mergers and acquisitions management both usually as the enterprise shareholder's agent, on the merger transaction negotiations and bargaining to determine the final transaction. In this process, the acquiring party negotiating advantage in M & A activity, while the target enterprise has information advantage. The target enterprises can take advantage of information maximization from F interest income, and M & A will be as much as possible to obtain accurate information of target enterprises, so as to more accurately estimate the potential value of target enterprise, increase their bargaining advantage.

　　In this case, the A company in the process of negotiations has price advantage, but because of their entrepreneurial ability is weak, lack of attractive acquisition scheme, eventually did not form a sufficient negotiating advantage. While the D price is at a disadvantage, but through M & a unique program, will own the disadvantage into advantage, made the final negotiations initiative. B's use of information superiority, introducing competition, avoid litigation risk and strategic opportunities for long-term development.

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