Greenmail

GREENMAIL

The term is a greenmail is formed by combining the terms HYPERLINK "http /en .wikipedia .org /wiki /Greenback " \o "Greenback " greenback and HYPERLINK "http /en .wikipedia .org /wiki /Blackmail " \o "Blackmail blackmail , invented by journalists and commentators who saw the practices of corporate raiders as a form of blackmail . The target company is financially held hostage , and is legally forced to pay the HYPERLINK "http /en .wikipedia .org /wiki /Greenmailer " \o "Greenmailer greenmailer to go away . Greenmailing is a variation on the HYPERLINK "http /en .wikipedia .org /wiki /Corporate_raid " \o "Corporate raid

br corporate raid or HYPERLINK "http /en .wikipedia .org /wiki /Takeover \o "Takeover " hostile takeover . The greenmailer commonly targets a publicly traded company that is cash rich but often undervalued , with large assets and possibly a solid customer base . Other targets are companies that are simply inefficient . The greenmailer isn 't really interested in the business of the company . It doesn 't want to own the company , improve it , or further build it up . It will , if forced to acquire the target , sell its parts off piecemeal , which can bring a greater profit than selling the whole target . This is called HYPERLINK "http /en .wikipedia .org /wiki /Asset_stripping " \o "Asset stripping asset stripping and involves replacing management and firing employees

Greenmail proved lucrative for investors such as HYPERLINK "http /en .wikipedia .org /wiki /T ._Boone_Pickens " \o "T . Boone Pickens T . Boone Pickens and HYPERLINK "http /en .wikipedia .org /wiki /James_Goldsmith " \o "James Goldsmith " Sir James Goldsmith during the...