greenmail Synonyms
No Synonyms and anytonyms found
greenmail Meaning
greenmail (n)
(corporation) the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the owners to buy those shares back at a premium in order to stay in business
greenmail Sentence Examples
- The company's shareholders accused management of engaging in greenmail to buy back their shares at an inflated price.
- The raider threatened to launch a hostile takeover unless the target company paid greenmail to purchase his stake.
- The Securities and Exchange Commission (SEC) investigated the greenmail transaction for potential violations of shareholder rights.
- The use of greenmail as a defense tactic raised ethical concerns regarding the protection of minority shareholders.
- Some investors argued that greenmail was a legitimate way to prevent hostile takeovers and protect the interests of existing shareholders.
- The target company succumbed to the greenmailer's demands to avoid a prolonged and costly battle.
- The acquisition of the raider's shares through greenmail resulted in a substantial premium for the former shareholder.
- The SEC's crackdown on greenmail practices led to a decline in its use as a takeover defense mechanism.
- The greenmail provision in the company's bylaws prohibited the company from repurchasing shares from an activist investor who had recently acquired a significant stake.
- The greenmail scandal exposed the potential conflicts of interest and abuses that could arise from such transactions.
FAQs About the word greenmail
(corporation) the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the owners to buy those shares back at a premium in
No synonyms found.
No antonyms found.
The company's shareholders accused management of engaging in greenmail to buy back their shares at an inflated price.
The raider threatened to launch a hostile takeover unless the target company paid greenmail to purchase his stake.
The Securities and Exchange Commission (SEC) investigated the greenmail transaction for potential violations of shareholder rights.
The use of greenmail as a defense tactic raised ethical concerns regarding the protection of minority shareholders.
