Greenmail refers to

Greenmail is a term used in corporate finance and mergers and acquisitions to describe a situation where a shareholder or investor threatens to take control of a company by acquiring a significant amount of its shares, unless the company agrees to buy back those shares at a premium price.

In other words, greenmail is a form of extortion where an investor demands a higher price for their shares than the market value, threatening to take control of the company if their demands are not met. This can be done by acquiring a significant stake in the company, or by making a tender offer to buy more shares.

The term "greenmail" was coined because the investor is essentially "greenmailing" the company, or sending a threatening message to get what they want. Greenmail is often seen as a form of corporate raiding, where an investor seeks to profit from the company's assets rather than its underlying business.

Greenmail can be harmful to the company and its shareholders, as it can lead to a loss of control and a diversion of resources away from the company's core business. It can also create uncertainty and instability, making it difficult for the company to make long-term decisions.

In recent years, greenmail has become less common due to changes in regulatory environments and the increasing use of defensive tactics by companies to prevent hostile takeovers. However, it remains a significant concern for companies and investors, and is often seen as a threat to corporate governance and the integrity of the capital markets.