greenmail

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Related to greenmailer: poison pill

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 ?
PHOTO : BRINGING DOWN THE GIANTS: Attorney Ted Skokos has been called a "greenmailer," but believes his success for shareholders in suits against Worthen and Ensco speaks for itself.
(178.) Eleanor Johnson Tracy, A New Greenmailer Swings Into Action,
To look for value creation in the market movements caused by greenmailer greed is not healthy, is not credible, is not in the long-term interests of management/shareholder-run enterprises, and is truly the road to the destabilization of American business.
Clarifying the criteria for invoking the poison pill, Nireco said in May it will maintain the right to issue the subscription warrants, among other things, if it finds a seeming acquirer to be a ''greenmailer'' -- an investor intent on getting a company, like Nireco, to buy back its holdings of shares in it later at a handsome profit.