Information AboutGreenmail |
| CATEGORIES ABOUT GREENMAIL | |
| mergers and acquisitions | |
|
Greenmailing is a variant of the Corporate Raid strategy of taking over an undervalued company, dismembering it, and selling off its valuable pieces for a profit. Once having secured a large share of a target company, instead of completing the hostile takeover the greenmailer offers instead to end the threat to the victim company by selling his share back to it—at a vastly inflated price. However, to preserve its own existence, the victim will often pay the exorbitant premium demanded. Goldsmith, for example, made $90 million from the Goodyear Tire And Rubber Company in the 1980s in this manner. Changes in the details of corporate ownership structure, in the investment markets generally, and in Federal tax treatment of greenmail gains (a 50% . SEE ALSO |
|
|