greenmail
Corporate ransom payment
Greenmail is a corporate defense tactic where a company buys back its own shares at a premium from an investor threatening a hostile takeover.
The raider profits by selling the shares above market price in exchange for abandoning the takeover attempt.
The term blends "green" (money) with "blackmail," reflecting the coercive nature of the transaction: The company paid $50 million in greenmail to fend off the corporate raider.
Unwanted corporate buyout attempt
- poison pillDefense against hostile takeovers
- white knightBenevolent takeover bidder
- corporate raidAggressive company acquisition attempt
- tender offerPublic share purchase proposal
buyout · shark repellent · premium · target company · acquirer · leveraged · defensive · proxy fight
Forceful extraction of payment
- ransomPayment for captive's release
- coercionPressured compliance through threats
- payoffCulminating benefit received
- squeezeFirm bilateral compression
hush money · tribute · protection money · threat · demand · blood money
Equity owner in corporation
- arbitrageExploiting price discrepancies
- arbitrageurTrader exploiting price discrepancies
- activist investorStockholder seeking corporate change
- hedge fundPrivate investment partnership
stake · SEC · stock · securities · tender offer · disclosure · accumulation · trading
hostile takeover
Unwanted corporate buyout attempt
- poison pillDefense against hostile takeovers
- white knightBenevolent takeover bidder
- corporate raidAggressive company acquisition attempt
tender offer · buyout · shark repellent · premium · target company · acquirer · leveraged · defensive · proxy fight · raider
shakedown
Forceful extraction of payment
- ransomPayment for captive's release
- coercionPressured compliance through threats
- payoffCulminating benefit received
squeeze · hush money · tribute · protection money · threat · demand · blood money
shareholder
Equity owner in corporation
- arbitrageExploiting price discrepancies
- arbitrageurTrader exploiting price discrepancies
- activist investorStockholder seeking corporate change
hedge fund · stake · SEC · stock · securities · tender offer · disclosure · accumulation · trading · equity
- Shareholder Activismshareholder activism, proxy fight, proxy vote, proxy voting, shareholder rights
- takeovershostile takeover, hostile bid, tender offer, takeover bid, corporate raider
- corporate practicesmerger, acquisition, takeover, buyout, layoff
- M&Amerger, acquisition, takeover, hostile takeover, leveraged buyout
- stock actionsstock split, reverse split, stock dividend, dividend, merger
greenmailfriendly merger
Mutually agreed company union
white knight · friendly takeover · strategic partnership · joint venture
greenmaillong-term investment
value investing · stewardship · shareholder activism · strategic investment
mail, blackmail, blackmailer, blackmailing, blackmailed, blackmails