Greenmail
Greenmail is a combination of targeted share repurchases that occur when a company buys back stock from a potential acquirer at a higher than fair-market price. In return, the potential acquirer agrees not to attempt to take over the company.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Greenmail. Targeted share repurchases that occur when a company buys back stock from a potential acquirer at a higher than fair-market price. In return, the potential acquirer agrees not to attempt to take over the company.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
