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A strategy used by corporation to discourage hostile takeovers in which board members reject a takeover bid outright.The legality of ‘just say no’ defense may depend in whether the target company has a long term strategy which include a merger other than making takeover bid. Sentence formation:The case of Paramount communication vs. Time inc helped the ‘just say no’ defense as a viable anti takeover strategy.
A just say no defense is not necessarily in the best interest of shareholders, since board members can employ it even if an offer is made at a significant premium to the current share price.
‘Just Say No’ is a defensive strategy that can be used by a company (Eg: Company X) when another company (Eg: Company Y) bids to takeover that company (X). Sometimes a company (Y) can forcefully try to take over a company (X) without their willingness. This is called as hostile takeover. However the targeted company (X) can still use the ‘just say no’ defence to discourage such hostile takeovers.
Sentence Formation:
The case of Paramount Communications vs. Time inc helped the ‘just say no‘ defence as a viable anti takeover strategy.
A just say no defense isn’t necessarily in the best interest of share holders since board members can employees it even if an of a is made at a significant premium to the current share price.
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