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
References in periodicals archive ?
For example, several studies have shown that CEOs with large stakes in their organizations are less likely to engage in anti-shareholder behavior such as resistance to takeovers, adoption of poison pills, and greenmail payments (e.
It was intended to stop the common practice of deducting greenmail payments made to halt hostile takeovers.
As a result of Five Star Manufacturing, some corporate taxpayers took the position that greenmail payments were deductible.