DEFINITION OF GREENMAIL
by tasnim insyirah
1. TERM FROM WORDS
1.1. blackmail
1.2. greenbuck (dollar)
2. IT IS
2.1. anti take over when large amount of stock is held by unfriendly company that is threatening a hostile takeover
3. IT REFER TO
3.1. the money pay by target company to bidder that has purchased the majority of target company's stocks
4. TARGET COMPANY
4.1. forced to repurchased the stock at premium
4.1.1. TO PREVENT THE TAKEOVER
4.2. need to pay premium known as Greenmail
4.3. to purchased their own stock back
5. BIDDER COMPANY
5.1. also known as CORPORATE RIDER
6. GREENMAIL
6.1. is
6.1.1. money that paid to the entity to stop aggresive behavior.
7. STOP MERGE
7.1. once the Corporate Rider accept the greenmail payment
7.1.1. they generally AGREES to STOP pursuing the takeover
7.1.2. NOT to purchased any shares for a specified number of years.