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 Words From

• greenmailer 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.

From Los Angeles Times

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

From Los Angeles Times

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

From Washington Post

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.

From 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.

From Washington Post