Definition for : Greenmail

"Greenmail" (inspired from the word blackmail) is the threat exerted on the management of a company, by person(-s) having accumulated shares for that purpose. The management can decide to buy out these Shareholders, sometimes (and if legally possible) at a Premium to Market price.

(See Chapter 43 Corporate governance of the Vernimmen)

To know more about it, look at what we have already written on this subject