greenmail

[green-meyl]

noun

Stock Exchange.

1. the practice of buying a large block of a company's stock in order to force a rise in stock prices or an offer by the company to repurchase that block of stock at an inflated price to thwart a possible takeover bid.

greenmail

/ ˈɡriːnˌmeɪl /

noun

1. (esp in the US) the practice of a company buying sufficient shares in another company to threaten takeover and making a quick profit as a result of the threatened company buying back its shares at a higher price

Other Word Forms

• greenmailer noun

Word History and Origins

Origin of greenmail¹

green (in sense “money”) + (black)mail

Word History and Origins

Origin of greenmail¹

C20: a blend of _green (sense 8) or _greenback (sense 2) + _blackmail

Example Sentences

Fiss said that companies often try to make corporate raiders go away quietly by paying a premium for the shares they acquired, a practice known as greenmail.

Read more on Los Angeles Times

Unions oppose reform because they use threats of environmental lawsuits to “greenmail” developers for labor concessions.

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Critics called this stratagem “greenmail” and condemned it for ignoring the interests of employees, customers and management.

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In 1987, the Internal Revenue Service introduced a tax of 50% on profits from greenmail, and several states passed laws making it hard for companies to buy back stakes from short-term investors at a premium.

Read more on The Wall Street Journal

In the 1980s, he pioneered “greenmail” raids in which financiers threatened companies with hostile takeovers unless they were paid a premium to go away.

Read more on Washington Post