greenmail


Also found in: Thesaurus, Legal, Financial, Encyclopedia, Wikipedia.
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.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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]
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

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.
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
Matbes remains good law and is often cited as drawing the line between permissible and impermissible "greenmail"--the strategy of buying stock in an apparent effort to take over a firm, but really to receive a premium repurchase offer from the firm.
(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.
* The advent of LBOs and "corporate raiders," the often-criticized payment of "greenmail," etc.
Phillip Goldberg, a partner at Foley & Lardner, noted in the SuperConference panel that "the days of 'greenmail' are gone," and also said that activists rarely take a settlement to "go away," since that would make it difficult for them to perform a future campaign.
Larochelle, S., Diguer, L., Laverdiere, O., Gamache, D., Greenmail, P.
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.
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.