greenmail

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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