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 reagan and/or defense:
“We’re an ideal political family, as accessible as Disneyland.”
—Maureen Reagan (b. 1941)
“From a bed in this hotel Seargent S. Prentiss arose in the middle of the night and made a speech in defense of a bedbug that had bitten him. It was heard by a mock jury and judge, and the bedbug was formally acquitted.”
—Federal Writers’ Project Of The Wor, U.S. public relief program (1935-1943)