Whitemail


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Whitemail

Sale of a large amount of stock by a company that is the target of a takeover bid to a friendly party at below-market prices, so that the raider is forced to buy more of highly priced shares to accomplish the takeover.

Whitemail

An anti-greenmail provision whereby a publicly-traded company sells a significant portion of its stock to a friendly company, usually at a discount to its market value. Greenmail is a practice in which a corporate raider buys stock directly from shareholders with no intention to actually take over the company, but instead wishes to force the company to buy back its own shares at a significant premium. When the target company engages in whitemail, it sells its shares to the friendly company in the belief or assurance that the friendly company will sell to the corporate raider only at a significant premium. Whitemail makes the greenmail more expensive for the corporate raider, who may then be forced to abandon the attempt.

whitemail

A takeover target's sale of a large number of its own shares at a bargain price to a friendly party. Whitemail causes a takeover to become more difficult and expensive because a corporate raider must purchase additional shares from a party friendly to the target company.
References in periodicals archive ?
long as the whitemail payment were accomplished through an intermediary
then director qualification bylaws or whitemail may become the preferred
With over 20 years of experience, PRC is an outsourced provider of solutions that support customer communications via the telephone, email, web, whitemail and IVR, each fully integrated to maximize service and quality.