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Nancy Davis Reagan was an American film actress and the First Lady of the United States from 1981 to 1989, as the second wife of president Ronald Reagan.
A shareholder rights plan, colloquially known as a "poison pill", is a type of defensive tactic used by a corporation's board of directors against a takeover.
In business, a takeover is the purchase of one company by another. In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.
In business, a corporate raid is the process of buying a large stake in a corporation and then using shareholder voting rights to require the company to undertake novel measures designed to increase the share value, generally in opposition to the desires and practices of the corporation's current management. The measures might include replacing top executives, downsizing operations, or liquidating the company.
A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company. The use of debt, which normally has a lower cost of capital than equity, serves to reduce the overall cost of financing the acquisition. This is done at the risk of magnified cash flow losses should the acquisition perform poorly after the buyout.
Francisco Anthony "Frank" Lorenzo is an American businessman. He managed Continental Airlines and Texas International Airlines between 1972 and 1990, through airline deregulation. Lorenzo also led the creation and management of the holding company for the group, Texas Air Corporation, through which New York Air was formed in 1980 and Eastern Air Lines was acquired in 1986, as well as Frontier Airlines and People Express Airlines.
"Just Say No" was an advertising campaign prevalent during the 1980s and early 1990s as a part of the U.S.-led war on drugs, aiming to discourage children from engaging in illegal recreational drug use by offering various ways of saying no. The slogan was created and championed by Nancy Reagan during her husband's presidency.
Greenmail or greenmailing is the action of purchasing enough shares in a firm to challenge a firm's leadership with the threat of a hostile takeover to force the target company to buy the purchased shares back at a premium in order to prevent the potential takeover.
Broadway Stores, Inc., was an American retailer based in Southern California. Known through its history as Carter Hawley Hale Stores and Broadway Hale Stores over time, it acquired other retail store chains in regions outside its California home base and became in certain retail sectors a regional and national retailer in the 1970s and 1980s. The company was able to survive takeover attempts in 1984 and 1986, and also a Chapter 11 bankruptcy filing in 1991 by selling off most of its assets until August 1995 when its banks refused to advance enough additional credit in order for the company to be able to pay off suppliers. At that point, the company sold itself to Federated Department Stores for $1.6 billion with the acquisition being completed on October 12, 1995.
In corporate finance, a tender offer is a type of public takeover bid. The tender offer is a public, open offer or invitation by a prospective acquirer to all stockholders of a publicly traded corporation to tender their stock for sale at a specified price during a specified time, subject to the tendering of a minimum and maximum number of shares. In a tender offer, the bidder contacts shareholders directly; the directors of the company may or may not have endorsed the tender offer proposal.
In business, a white knight is a friendly investor that acquires a corporation at a fair consideration with support from the corporation's board of directors and management. This may be during a period while it is facing a hostile acquisition from another potential acquirer or it is facing bankruptcy. White knights are preferred by the board of directors and/or management as in most cases as they do not replace the current board or management with a new board, whereas, in most cases, a black knight will seek to replace the current board of directors and/or management with its new board reflective of its net interest in the corporation's equity.
The Pac-Man defense is a defensive business strategy used to stave off a hostile takeover, in which a company that is threatened with a hostile takeover "turns the tables" by attempting to acquire its would-be buyer. The name refers to Pac-Man, a video game in which the protagonist is at first chased around a maze of dots by 4 ghosts. However, after eating a "Power Pellet" dot, he is able to chase and devour the ghosts. The term was coined by buyout guru Bruce Wasserstein.
The term standstill agreement refers to various forms of agreement which businesses may enter into in order to delay action which might otherwise take place.
Andy Kessler is an American businessman, investor, and author. He writes the "Inside View" column for The Wall Street Journal opinion page.
Ronald Reagan was the 40th president of the United States from 1981 to 1989. Previously, he was the 33rd governor of California from 1967 to 1975 and acted in Hollywood films from 1937 to 1964, the same year he energized the American conservative movement. Reagan's basic foreign policy was to equal and surpass the Soviet Union in military strength, and put it on the road to what he called "the ash heap of history". By 1985, he began to cooperate closely with Soviet leader Mikhail Gorbachev, whom he became friends and negotiated large-scale disarmament projects with. The Cold War was fading away and suddenly ended as the Soviets lost control of Eastern Europe almost overnight in October 1989, nine months after Reagan was replaced in the White House by his vice president, George H. W. Bush, who was following Reagan's policies. The dissolution of the Soviet Union took place in December 1991. In terms of the Reagan Doctrine, he promoted military, financial, and diplomatic support for anti-communist insurgencies in Afghanistan, Nicaragua, and numerous other countries. For the most part, local communist power collapsed when the Soviet Union collapsed.
Melrose Industries plc is a British manufacturing company based in London. It specialises in buying, investing in, and divesting engineering companies. Its shares are listed on the London Stock Exchange as a constituent of the FTSE 100 Index. Melrose serves customers in the United Kingdom and United States.
Private equity in the 1980s relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel although interrelated tracks.
Staggered elections are elections where only some of the places in an elected body are up for election at the same time. For example, United States senators have a six-year term, but they are not all elected at the same time. Rather, elections are held every two years for one-third of Senate seats.
The following is a glossary which defines terms used in mergers, acquisitions, and takeovers of companies, whether private or public.
Allergan plc is an American, Irish-domiciled pharmaceutical company that acquires, develops, manufactures and markets brand name drugs and medical devices in the areas of medical aesthetics, eye care, central nervous system, and gastroenterology. The company is the maker of Botox.
References
- ↑ PBS interview with Andy Kessler (2004)
- ↑ "NCR's `Nancy Reagan Defense' May Not Work Much Longer". Business Week. Bloomberg L.P. March 31, 1991. Retrieved 5 October 2015.
