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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.


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Looking at Steel Partners' past behavior in Japan, the company is inevitably being suspected'' as a greenmailer, which seeks quick profits rather than boosting the corporate value of a target company, said Takao Kitabata, vice minister of economy, trade and industry.
During the eighties, Icahn was characterized in the financial press as a corporate greenmailer.
An accomplished greenmailer, Goldberg, 54, had made millions in the risky business of buying stakes in companies, then selling to raiders or management once the companies were in play.
 
 
 
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