Greenmail examples pedir
Greenmail is a term used to describe a situation where a shareholder or investor demands a company to buy back their shares at a premium price, often in exchange for not taking hostile action against the company. Here are some examples of greenmail:
- Kohlberg Kravis Roberts (KKR) and RJR Nabisco: In the 1980s, KKR acquired RJR Nabisco in a leveraged buyout. Later, KKR sold some of its shares to institutional investors, who then demanded a buyback at a premium price. KKR agreed to the buyback, which was seen as a form of greenmail.
- T. Boone Pickens and Mesa Petroleum: In the 1980s, T. Boone Pickens, a billionaire investor, acquired a significant stake in Mesa Petroleum. He then demanded a buyback of his shares at a premium price, which Mesa Petroleum agreed to in order to avoid a hostile takeover.
- Carl Icahn and TWA: In the 1980s, Carl Icahn, a billionaire investor, acquired a significant stake in Trans World Airlines (TWA). He then demanded a buyback of his shares at a premium price, which TWA agreed to in order to avoid a hostile takeover.
- Vanguard Group and DuPont: In the 1990s, the Vanguard Group, a large institutional investor, acquired a significant stake in DuPont. Vanguard then demanded a buyback of its shares at a premium price, which DuPont agreed to in order to avoid a hostile takeover.
- Bill Ackman and J.C. Penney: In the 2010s, Bill Ackman, a billionaire investor, acquired a significant stake in J.C. Penney. He then demanded a buyback of his shares at a premium price, which J.C. Penney agreed to in order to avoid a hostile takeover.
In each of these examples, the shareholder or investor demanded a buyback of their shares at a premium price, which the company agreed to in order to avoid a hostile takeover or other adverse consequences. This is an example of greenmail, where the shareholder or investor uses their power to extract a premium price for their shares.