DEFINITION of 'Bankmail'

An agreement made between a company planning a takeover and a bank, which prevents the bank from financing any other potential acquirer's bid.

BREAKING DOWN 'Bankmail'

Bankmail agreements are meant to stop other potential acquirers from receiving similar financing arrangements.

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RELATED FAQS
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    Learn about why companies use a hostile takeover to gain control of another company, and understand the different methods ... Read Answer >>
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    When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. ... Read Answer >>
  3. How can a company buy back shares to fend off a hostile takeover?

    Learn about why a business might use a stock buyback to thwart a hostile takeover attempt by reducing its total assets and ... Read Answer >>
  4. What's the difference between a merger and a hostile takeover?

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