Greenmail

What does it Mean? A situation in which a large block of stock is held by an unfriendly company. This forces the target company to repurchase the stock at a substantial premium to prevent a takeover.

It is also known as a "bon voyage bonus" or a "goodbye kiss".
Investopedia Says... Not unlike blackmail, this is a dirty tactic, but it's very effective.

Terms Related Links

Bankmail
Dawn Raid
Hostile Takeover
Macaroni Defense
Poison Pill
Whitemail

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