This thesis aims to analyze the influence of the legal environment on the post-takeover value of a firm. The idea behind this thesis stems from the large number of discussions concerning the future of the European corporate governance system and the direction its development is taking. In this thesis the following issues were formalized and analyzed: the existing differences between the two major corporate governance systems of the U.S. and the European Union (EU); and secondly constructed a formal model to demonstrate the influence of legal parameters on the post-takeover value of a firm. I construct a new model based on the one introduced by Burkart, Gromb and Panunzi (2005). This model formalizes, in the author’s opinion, three key differences between the two major systems of corporate governance: the possibility of implementing defensive strategies, the effect of the size of the toehold and the influence of majority blockholders.