DEFINITION of 'Whitemail'
A strategy that a takeover target uses to try and thwart an undesired takeover attempt. The target firm issues a large amount of shares at below-market prices, which the acquiring company will then have to purchase if it wishes to complete the takeover.
BREAKING DOWN 'Whitemail'
If the whitemail strategy is successful in discouraging the takeover, then the company can either buy back the issued shares or leave them outstanding.