whitemail

Whitemail

A strategy that a takeover target uses to try and thwart an undesired takeover attempt. The target firm issues a large amount of shares at below-market prices, which the acquiring company will then have to purchase if it wishes to complete the takeover.

Notes:

If the whitemail strategy is successful in discouraging the takeover, then the company can either buy back the issued shares or leave them outstanding.

See also: Bankmail, Greenmail, Macaroni Defense, Takeover, Target Firm

---

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

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.