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.
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Greenmail

When companies threaten to close or relocate (often to another country) if they are forced to comply with environmental laws.
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References in periodicals archive ?
Amounts paid by a corporation in connection with the reacquisition of its stock must generally be capitalized.(105) Thus, greenmail payments must be capitalized.
Greenmail payments. Payments made to a hostile suitor by the target company to buy back shares of its own stock.
Observation: This decision could adversely affect corporations that paid and deducted greenmail under a survival theory by threatening the deductibility of greenmail payments.