The Nancy Reagan defense is a tactic in corporate finance used to counter a takeover or merger bidder who has made a formal bid to shareholders to buy their shares. When the board of directors of the target company meets to consider the bid, they "just say no."
For example, in a discussion of a takeover of the Walt Disney Company by Comcast, analyst Andy Kessler on Wall Street Week stated "there are two great Wall Street defenses. One is the Nancy Reagan defense and the other is the Pac-Man defense, right? And the Nancy Reagan defense is, just say no." The term refers to a catch-phrase coined by former United States First Lady Nancy Reagan advocating abstinence from recreational drug use.
Famous quotes containing the words nancy reagan, reagan and/or defense:
“A woman is like a teabag—only in hot water do you realize how strong she is.”
—Nancy Reagan (b. 1923)
“Unemployment insurance is a pre-paid vacation for freeloaders.”
—Ronald Reagan (b. 1911)
“The sick man is taken away by the institution that takes charge not of the individual, but of his illness, an isolated object transformed or eliminated by technicians devoted to the defense of health the way others are attached to the defense of law and order or tidiness.”
—Michel de Certeau (1925–1986)