greenmail


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Related to greenmail: poison pill

green·mail

 (grēn′māl′)
n.
The practice of selling shares of a company back to existing shareholders at a price substantially higher than that at which they were bought in exchange for discontinuing a hostile takeover.

[green, money + (black)mail.]

green′mail′ v.
green′mail′er n.

greenmail

(ˈɡriːnˌmeɪl)
n
(Banking & Finance) (esp in the US) the practice of a company buying sufficient shares in another company to threaten takeover and making a quick profit as a result of the threatened company buying back its shares at a higher price
[C20: a blend of green (sense 8) or greenback (sense 2) + blackmail]

green•mail

(ˈgrinˌmeɪl)

n.
the practice of buying a large block of a company's stock so that the company is forced to repurchase the stock at inflated prices to avert a takeover.
[1980–85; green (in sense “money”) + (black) mail]
green′mail`er, n.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.greenmail - (corporation) the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the owners to buy those shares back at a premium in order to stay in business
porcupine provision, shark repellent - a measure undertaken by a corporation to discourage unwanted takeover attempts
corp, corporation - a business firm whose articles of incorporation have been approved in some state
References in periodicals archive ?
33) If these creditors can establish that a separate class is needed for their votes, then this gives them effective leverage to greenmail the senior lenders into diverting value to their level in the capital structure to ensure that all classes of creditors approve the scheme.
Boone Pickens is my inspiration and my hero, his Mesa Petroleum greenmail deals -- Capital Cities, Philips Petroleum, Gulf Oil -- mesmerised me even when I was a mere student at Wharton.
In the 1980s, he pioneered so-called greenmail raids in which financiers threatened companies with hostile takeovers unless they were paid a premium to go away.
As Icahn, in particular, did more and more greenmail deals and his pot increased, he was able to go after bigger companies.
Algunos trabajos se han centrado en acciones corporativas especificas, tales como el hecho de pagar greenmail (28), en la relacion con la representacion de vocales externos en el consejo.
Gunns, once one of the best performing companies in Australia, has suffered an even worse fate, entering into voluntary administration in September after a relentless campaign of eco-terrorism and greenmail that led institutional investors to dump the shares - and Japanese customers to flee Tasmania.
107) However, their model, designed to analyze greenmail, (108) only applies to "action[s] that effectively eliminate[] a potential acquirer.
Section 5881 imposes a 50% excise tax on so-called greenmail payments.
This finding is consistent with research on the relationship between board characteristics and intermediate outcome variables, such as the likelihood of financial statement fraud, reaction to greenmail, adoption of golden parachutes, and membership on board committees.
Active defenses include greenmail, which is "the payment of a substantial premium for a significant shareholder's stock in return for the stockholder's agreement that he or she will not initiate a bid for control of the company;" standstill agreements, "when the target corporation reaches a contractual agreement with a potential acquirer whereby the would-be acquirer agrees not to increase its holdings in the target during a particular time period"; and capital structure changes, including recapitalization, assuming more debt, issuing more shares or buying back shares from the potential hostile bidder, either through a self-tender, open market purchases, or targeted share repurchases, as in the case of greenmail.