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Greenmail |
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GreenmailA US term which describes the situation in which a takeover target buys back its own shares from a predator at a premium price, in return for the predator not pursuing a bid.GreenmailThe holding of a large block of stock of a target company by an unfriendly company, with the object of forcing the target company to repurchase the stock at a substantial premium to prevent a takeover.Greenmail Similar MatchesAntigreenmailAntigreenmailGreenmail refers to the agreement between a large shareholder and a company in which the shareholder agrees to sell his stock back to the company, usually at a premium, in exchange for the promise not to seek control of the company for a specified period of time. Antigreenmail provisions prevent such arrangements unless the same repurchase offer is made to all shareholders or approved a shareholder vote. There are some states that have antigreenmail laws. |
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