Greenmail
Buy a big stake, threaten a takeover, then sell it back to the target at a premium.
Definitions
A corporate raider tactic: accumulate a threatening block of a company's shares, rattle the board with the prospect of a hostile takeover, then agree to go away in exchange for the company buying the stake back at a fat premium. The target's other shareholders get diluted while the raider walks off with a quick payday. Heyday was the 1980s; later largely killed off by tax and securities reforms.
Greenmail In A Sentence
Origin & Usage
Portmanteau of 'greenback' (US dollar) and 'blackmail', coined in the 1980s during the wave of US hostile takeover battles.
People Also Ask
What does greenmail mean?
Greenmail is buying a big stake in a company, threatening a takeover, then selling the shares back to the target at a premium.
How do you use greenmail in a sentence?
"The raider walked away with a fortune through greenmail."
Where does the word greenmail come from?
It's a blend of "greenback" (US dollars) and "blackmail," reflecting the coercive buy-back tactic.
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