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Glite Dictionary
greenmail

greenmail

1 9.9
Buying a large share in a company to force the company to pay more for your shares
  • noun
  • /ˈɡriːnmeɪl/
  • Specialized
: greenmail
  • That work requires her to have broad knowledge of contracts, as well as corporate, securities, employment, and labor law, including "greenmail, golden parachutes—all that fun stuff," she says.

Examples

  • The board decided to pay greenmail to ensure that the aggressive investor would not pursue a hostile takeover.

  • An even more cynical view is that Icahn and his slate just want to be bought off with greenmail of some sort.

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  • He engaged in greenmail by purchasing a large amount of stock, forcing the company to buy back his shares to avoid a takeover.

  • Companies often resort to greenmail as a last resort to protect themselves from unwanted acquisitions.

Surface Forms

greenmail singular
greenmails plural

Etymology

Greenmail mixes green (a casual word for 'money', as in 'greenbacks') and blackmail (a 'threat' that forces someone to pay). So greenmail means someone buys a large part of a company as a threat, and the company pays them off to avoid a takeover.