whitemail

whitemail definition - finance
A tactic to avoid an unwanted takeover attempt in which the company that is the target sells stock to a friendly company at below-market prices. In order for the potential acquirer to prevail, the company will have to the buy additional shares of stock in order to take over the company. This will cause the purchase price to rise. Whitemail thus makes the takeover less attractive.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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