greenmail

greenmail
= greymail
The purchase of a large block of shares in a company, which are then sold back to the company at a premium over the market price in return for a promise not to launch a bid for the company. This practice is not uncommon in the USA, where companies are much freer than in the UK to buy their own shares. Although the morality of greenmail is dubious, it can be extremely profitable.

Big dictionary of business and management. 2014.

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  • Greenmail — or greenmailing refers to a legal business practice in a public stock market where one firm takes advantage of another firm by means of a falsely construed takeover.OriginThe term is a neologism combining the terms greenback and blackmail,… …   Wikipedia

  • greenmail — green·mail / grēn ˌmāl/ n [green (money) + mail (as in blackmail )]: the practice of buying enough of a company s stock to threaten a hostile takeover and reselling it to the company at a price above market value; also: the money paid for such… …   Law dictionary

  • greenmail — green mail n. (Finance) The act, performed by a publicly traded corporation, of paying a corporate raider to give up a takeover attempt, by buying the shares of stock he owns; also, the threat posed by corporate raiders to take over a company… …   The Collaborative International Dictionary of English

  • greenmail — [grēn′māl΄] n. Informal the buying of a large amount of a company s stock in anticipation that the management, fearing that the buyer will gain control, will buy it back at a premium over the market price greenmailer n …   English World dictionary

  • Greenmail — Situation in which a large block of stock is held by an unfriendly company, forcing the target company to repurchase the stock at a substantial premium to prevent a takeover. The New York Times Financial Glossary * * * greenmail green‧mail… …   Financial and business terms

  • greenmail — The holding of a large block of stock of a target company by an unfriendly company, with the object of forcing the target company to repurchase the stock at a substantial premium to prevent a takeover. Bloomberg Financial Dictionary The situation …   Financial and business terms

  • greenmail — [[t]gri͟ːnmeɪl[/t]] N UNCOUNT Greenmail is when a company buys enough shares in another company to threaten a takeover and makes a profit if the other company buys back its shares at a higher price. [mainly AM, BUSINESS] Family control would… …   English dictionary

  • greenmail — n. a money making scheme wherein a very wealthy person buys a large number of shares of a company, threatens to take control of the company, and then offers to sell the stock to the company at an exorbitant price in lieu of a takeover.… …   Dictionary of American slang and colloquial expressions

  • greenmail — noun Date: 1983 the practice of buying enough of a company s stock to threaten a hostile takeover and reselling it to the company at a price above market value; also the money paid for such stock • greenmail transitive verb • greenmailer noun …   New Collegiate Dictionary

  • greenmail — The purchase of a large block of shares in a company, which are then sold back to the company at a premium over the market price in return for a promise not to launch a bid for the company. This practice is not uncommon in the USA, where… …   Accounting dictionary

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