Greenmail example synonym
Greenmail is a term used to describe a situation where a corporate raider or activist investor threatens to take over a company unless the company's management agrees to buy back the raider's shares at a premium price. Here are some synonyms for greenmail:
- Hostile takeover: This term refers to a takeover attempt where the acquirer does not have the support of the target company's management or board of directors.
- Raider's demand: This term refers to the demand made by a corporate raider or activist investor for a company to buy back their shares at a premium price.
- Share buyback threat: This term refers to the threat made by a corporate raider or activist investor to sell their shares in a company unless the company agrees to buy them back at a premium price.
- Tender offer: This term refers to an offer made by a company to buy back its own shares from its shareholders at a specified price.
- Proxy fight: This term refers to a contest for control of a company where one group of shareholders tries to elect a different slate of directors than the company's current management.
Example:
"Activist investor Carl Icahn threatened to launch a proxy fight to take control of the company unless the board agreed to buy back his shares at a premium price, a move that would have given him a significant stake in the company. The board ultimately agreed to the buyback, which was seen as a form of greenmail to avoid a costly and distracting proxy fight."