greenmail


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Related to greenmail: poison pill
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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 ?
Specifically, our antitakeover index increases by one if the state includes a control share statute, fair-price statute, no-freeze-out statute, poison pill endorsement statute, constituencies statue, or greenmail statute.
3 million in greenmail to repurchase the 474,700 shares owned by Lawrie at $26 per share, a substantial premium above the $14 to $17 per share that Lawrie had paid for its original investment.
162) In this respect, some hedge funds ape the greenmail tactics of the 1980s; the difference is that greenmail is today difficult to extract from wary directors, or even illegal under state law.
The Canadian securities law regime differs significantly from the regulatory environment in the United States which prompted the creation of the Pill and which permits two-tier front-end loaded junk bond-financed bust-up acquisitions, street sweeps and greenmail.
I believe they call it greenmail on Wall Street -- that is, the act of buying up enough company stock and cause it enough pain that the controlling interests will just pay to make them go away.
Some types of excise taxes have separate forms, such as the heavy highway vehicle use tax (Form 290), gas guzzler tax (Form 6197), and excise tax on greenmail (Form 8725).
53) Goodyear succeeded in retaining control of the company, but at a cost of $90 million in greenmail (54) to Goldsmith and, according to some, the "abandonment of its long-term corporate strategy.
Greenmail is a cut above ordinary email because it makes messages safe using bespoke encryption technologies, prevents spam junk mail, stops people sending mail to the wrong recipient, tells the sender when their message has been read, and gives a genuine recall facility if the sender gets it wrong--which can save red faces all round
Despite opposition from Disney's board, shareholders voted in favor of a proposal to stop greenmail - the payment of money to appease a proxy contest or takeover threat.
The study did not include companies that repurchased their stock because of a greenmail threat.
Anti-greenmail: Greenmail refers to the agreement between a large shareholder and a company in which the shareholder agrees to sell his stock back to the company, usually at a premium, in exchange for the promise not to seek control of the company for a specified period of time.
During the takeover battles of the 1980's, abuses like greenmail and poison pills even led Congress to consider legislation to enfranchise shareholders.
For example, several studies have shown that CEOs with large stakes in their organizations are less likely to engage in anti-shareholder behavior such as resistance to takeovers, adoption of poison pills, and greenmail payments (e.
This is not shareholder activism - it appears to be just rent-a-share greenmail for the AGM,' Mr Ritblat said.
A Carlisle museum's display on the reivers says rent paid to landowners was greenmail and protection money paid to reiving families was blackmail.