1. the practice of buying enough shares in a company to threaten a takeover and then selling them back to the company at an inflated price
Usage: business; finance

1. to practice greenmail against a company
Usage: business; finance

Examples

• The corporate raider made millions through greenmail schemes in the 1980s.
• The company’s board voted to buy back shares to avoid a hostile takeover attempt.
• Greenmail became a controversial practice that enriched some investors at shareholders’ expense.
• The investor threatened to greenmail the corporation unless they met his demands.
• New regulations were introduced to prevent greenmail tactics.
• The CEO refused to pay greenmail to the aggressive investor group.