1. the practice of buying a large stake in a company to threaten a hostile takeover, then selling the stake back to the company at a profit to avoid the takeover
Usage: finance; business

Examples

• The investor engaged in greenmailing by acquiring 10% of the company's shares and demanding a buyback at an inflated price.
• Greenmailing became a controversial tactic in the 1980s when corporate raiders used it to extract millions from target companies.
• The board implemented anti-greenmailing measures to protect shareholders from hostile takeover threats.
• Critics argue that greenmailing enriches raiders at the expense of ordinary investors.
• The company paid a premium to repurchase shares and avoid the greenmailing threat.