greenmailer

Stock buyback forcer

A greenmailer is a person or entity that buys a large stake in a company, threatens a hostile takeover, then sells the shares back to the company at a premium to go away.

The term combines greenback (money) with blackmail, capturing the coercive nature of the tactic: Corporate raiders of the 1980s were often dismissed as greenmailers.

The practice is now restricted by tax penalties and legal reforms.