Business Savvy or Corporate Raiding?

Corporate Raiding was one of the popular topics in the 70s and 80s. With the increasing stringent corporate governance framework and regulations, corporate raiders or "controversial investors are more careful and savvy in conducting their deals. Asset stripping may not be the maximized benefit. The increasing complicated financial markets probably provide more opportunities for bigger pots of gold. Therefore, these controversial investors may in fact provide additional benefits to other shareholders of the target firms as observed in Holderness and Sheehan (1985) study. Through the brief introduction of a real life example, the paper attempts to provide some potential insights on corporate deals and the potential reasons for Holderness and Sheehan (1985)'s finding on the improved management hypothesis.