What is 'Bankmail'

Bankmail is an agreement made between a company planning a takeover and a bank in which the bank agrees not to finance any other acquirer's bid.

BREAKING DOWN 'Bankmail'

Bankmail is a colloquial term playing off the word "blackmail" that refers to agreements are meant to stop other potential acquirers from receiving similar financing arrangements. If an acquiring company can effectively lock other potential bidders out by preventing a major bank from offering them financing, that would give the acquirer an advantage in completing the deal. It may also force other bidders to obtain financing from other sources that may charge a higher interest rate.

RELATED TERMS
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  5. Hostile Bid

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