Greenmailer


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Greenmailer

A corporate raider who buys a large amount of stock from a publicly-traded company and forces it to buy back the stock at a substantial premium in order to avoid a takeover. The corporate raider has no intention of actually buying the target company; it merely seeks to profit from the buyback. One refers to this buyback as a bon voyage bonus, as this enables the company to be left alone by the greenmailer. T. Boone Pickens was a prominent greenmailer in the 1980s.
References in periodicals archive ?
Others who see merit in takeovers are arbitrageurs, raiders, greenmailers, investment bankers who play chaperone or matchmaker, lawyers, speculators and short-term shareholders.
The bulk of the aggressive moves have come from the so-called Kaishime or greenmailers.
News surrounding our industry today is laced with an ever-broadening lexicon, which includes friendly and hostile takeovers, mergers and acquisitions, leveraged buyouts, invaders, white-knights, greenmailers, and the list goes on.