verb
- past tense of greenmail: to coerce a company into buying back shares at an inflated price by threatening a hostile takeover
Usage: finance; business
Examples
- The investor greenmailed the corporation by accumulating shares and threatening a takeover.
- The company was greenmailed into repurchasing its own stock at premium prices.
- Several shareholders greenmailed the board during the 1980s corporate raid era.
- The activist greenmailed management by acquiring a significant stake and demanding changes.
- After being greenmailed, the firm had to spend millions to regain control of its shares.