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Related to greenmail: poison pill
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.
(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]
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.
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|Noun||1.||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