greenmail [noun]
Definition of 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
Synonyms of greenmail:
Sentence/Example of greenmail:
The activist investor engaged in greenmail tactics to profit from the company's desperation to avoid a takeover.
The board of directors decided to pay greenmail to prevent the hostile takeover bid.
Greenmailing is often seen as an unethical practice in corporate governance.
The company's management faced criticism for succumbing to greenmail pressures instead of pursuing long-term growth strategies.
Investors condemned the use of greenmail as a short-term profit strategy that harms shareholders' interests.
The billionaire investor was notorious for his aggressive greenmailing tactics in the 1980s.
The company's stock price surged after rumors of a greenmail deal spread in the financial markets.
Greenmail payments are usually made to ensure corporate independence and avoid unwanted mergers.
Legal reforms were enacted to curb abusive greenmail practices in the securities markets.
Shareholders demanded transparency regarding the board's decision-making process on greenmail issues.