Refers to a target company buying back its shares from a potential raider at a price higher than that offered to other stockholders, in exchange for the recipient ending the attempted hostile takeover.
Definition from Nolo’s Plain-English Law Dictionary
A situation in which a person or entity (the greenmailer) buys enough stock in a public company to threaten a hostile takeover. The greenmailer offers to end the threat to the company by selling its stock back at a higher price. The term combines the words greenback and blackmail.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:17 pm