Securities Daily: Beware of the irrational premium in mergers and acquisitions.

Recently, a A-share listed company specializing in the field of optical communication announced the termination of the asset restructuring involving the acquisition of shares of a segmented target company in the same industry through a combination of "issuing shares + cash". The main reason behind the termination is the significant disagreement between the two parties on the valuation of the target assets, making it difficult to reconcile, and thus a potentially mutually beneficial industrial chain merger has been abandoned. According to incomplete statistics, there have been 5 similar cases of terminated restructuring projects due to the same reasons this year. Against the backdrop of the continuous enthusiasm for industrial mergers and acquisitions, some prominent targets in certain segmented hot tracks have drifted away from fundamentals in valuation, with premiums remaining high, becoming a key reason for the premature end of some merger projects.