greenmail
/ˈɡriːnmeɪl/
verb
- To engage in the practice of greenmail by buying shares and threatening a takeover to force the company to buy them back at a premium.
- They planned to greenmail the firm unless it agreed to their demands.
- The investor tried to greenmail the board by accumulating a large stake in the company.
- The CEO warned that anyone attempting to greenmail the corporation would face legal action.
noun
- The practice of buying enough shares in a company to threaten a hostile takeover, then selling them back to the company at a higher price to avoid the takeover.
- Greenmail is often seen as a controversial and unethical business strategy.
- Many companies have adopted anti-greenmail policies to protect themselves from such tactics.
- The corporate raider was accused of using greenmail to make a quick profit.