Origin of greenmail; from green () + (black)mail
Origin of greenmailgreen, money + (black)mail.
- Profiting from an attempted hostile takeover by forcing the target company to buy back the hostile bidder's shares at an inflated price.
greenmail - Investment & Finance Definition
A payment made to the potential acquirer of a company in a hostile takeover attempt. The company agrees to buy the potential acquirer’s shares at a premium if the acquirer agrees to stop the takeover attempt and not undertake any more for a certain period of time. This process is also called a targeted stock repurchase payment; critics of it say it is little more than a bribe, hence the term greenmail.
greenmail - Legal Definition