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
  1. Under what circumstances might a company decide to do a hostile takeover?

    Learn about why companies use a hostile takeover to gain control of another company, and understand the different methods ... Read Answer >>
  2. What happens to the stock prices of two companies involved in an acquisition?

    When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. ... Read Answer >>
  3. What is the difference between a hostile takeover and a friendly takeover?

    Learn about the difference between a hostile takeover and a friendly takeover, and understand how proxy fights and tender ... Read Answer >>
  4. What's the difference between a merger and a hostile takeover?

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    To employ the Pac-Man defense, a company will scare off another company that had tried to acquire it by purchasing large ... Read Answer >>
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