And since the only two people who could meaningfully object to this particular form of greenmail
were Loeb's chosen CEO and CFO, there was no way this was going to happen.
Common defenses include shareholders' rights plans, voting rights plans, staggered boards, greenmail
, the use of white knights, and the pac-man response.
outcome--when an activist successfully extracts greenmail
, or a hedge
Limited partners in activist hedge funds can make their own assessments of the likelihood that the attempt at greenmail
will be successful, and therefore they are far better situated to implicitly mark the hedge funds' assets to market than are limited partners of buyout and distressed securities funds.
Kosnik (1987) found that the proportion of outside directors was negatively associated with the payment of greenmail
, although neither Davis (1991) nor Mallette and Fowler (1992) found a relationship between their operationalizations of director dependence and the adoption of poison pills.
For those who weren't content with a mere 30 percent return on capital, hedge funds came along and made greenmail
seem like a piker's game.
Goodyear paid greenmail
and announced a self-tender.
It was intended to stop the common practice of deducting greenmail
payments made to halt hostile takeovers.
Times Publishing sooner or later will weary of the threat and use its fat cash flow to buy out the Bass group at a juicy profit without using the word greenmail
," Forbes predicted in April 1990.
While calling greenmail
payments "repulsive," he refused to rule out this strategy.
The most recent innovation of this kind is a form of greenmail
, a law that cuts off highway funds to states that do not suspend the driver's licenses of those convicted of possession of illegal drugs.
Observation: This decision could adversely affect corporations that paid and deducted greenmail
under a survival theory by threatening the deductibility of greenmail