Like blackmail, greenmail is money that is paid to head off a behavior that is potentially harmful but here is the difference.
An antitakeover measure that arises when a large block of stock is held by an unfriendly company that is threatening a hostile takeover. Greenmail is a term that applies to mergers and acquisitions, and refers to the money that is paid by the target company to another company, known as a corporate raider, that has purchased a majority of the target company’s stock. The greenmail payment is made in an attempt to stop the takeover bid. The target company is forced to repurchase the stock at a substantial premium (the payment) to prevent the takeover. This is also known as a “bon voyage bonus” or a “goodbye kiss.” (via Investopedia)
Greenmail is the new blackmail. #color.
Greenmail is, quite logically, blackmail of a different color.
David Wild (born December 16, 1961) is an American writer and critic in the music and television industries, and a contributing editor at Rolling Stone magazine. His published books include Friends: The Official Companion (1995), Seinfeld: The Totally Unauthorized Tribute (1998), Friends ’til the end (2004), and others. (via Wikipedia)
Feature Image Credit: Photo by Daria Nepriakhina on Unsplash
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