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Business Definition for: greenmail
greenmail
payment of a premium to a raider trying to take over a company through a proxy contest or other means. Also known as bon voyage bonus , it is designed to thwart the takeover. By accepting the payment, the raider agrees not to buy any more shares or pursue the takeover any further for a specified number of years.
See also goodbye kissgreenmail
in corporate takeovers, a target company's acquisition of its stock from a hostile suitor at a premium to its market value; a variant of blackmail, descriptive of the color of money. The suitor profits at the expense of the target corporation's remaining stockholders.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
