greenmail

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greenmail,

payment, by a corporation that is a takeover target, of a premium price for the shares of its stock that have been accumulated by the potential buyer. In exchange, the potential buyer stops the takeover bid.

Greenmail

When companies threaten to close or relocate (often to another country) if they are forced to comply with environmental laws.
References in periodicals archive ?
Although not entirely clear, even before the enactment of section 162(k) greenmail payments were presumably nondeductible.
Observation: This decision could adversely affect corporations that paid and deducted greenmail under a survival theory by threatening the deductibility of greenmail payments.