greenmail

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Words related to 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 order to stay in business

References in periodicals archive ?
It was intended to stop the common practice of deducting greenmail payments made to halt hostile takeovers.
As a result of Five Star Manufacturing, some corporate taxpayers took the position that greenmail payments were deductible.
In addition to withdrawing TAM 8516002, TAM 8626001 specifically considered the treatment of greenmail payments.
6 /PRNewswire/ -- Proposed limitations on greenmail payments by Jefferson-Pilot Corporation (NYSE: JP) have been "reluctantly withdrawn" by Resources Planning Corporation (RPC), a long-term JP shareholder.
Observation: This decision could adversely affect corporations that paid and deducted greenmail under a survival theory by threatening the deductibility of greenmail payments.