When a hostile bidder purchases shares in a target and threatens to take control, and the target pays the hostile a premium for those shares to make the hostile bidder go away, this is known as greenmail.
Greenmail occurred quite frequently in the mid-1980's, with Carl Icahn, T. Boone Pickens, and Saul Steinberg making millions from greenmail. Greenmail is less common today because (a) some companies have anti-greenmail provisions which prevent the board from paying greenmail and (b) the U.S. now taxes profits from greenmailing at 50%, which reduces the incentive to greenmail a company.
You can read about Saul Steinberg's greenmailing of Quaker State here: [ Ссылка ]
You can read about Saul Steinberg's greenmailing of Disney here: [ Ссылка ]
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* [ Ссылка ]
—
SUPPORT EDSPIRA ON PATREON
*[ Ссылка ]
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* [ Ссылка ]
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: [ Ссылка ]
* Spotify: [ Ссылка ]
* Website: [ Ссылка ]
—
GET TAX TIPS ON TIKTOK
* [ Ссылка ]
—
ACCESS INDEX OF VIDEOS
* [ Ссылка ]
—
CONNECT WITH EDSPIRA
* Facebook: [ Ссылка ]
* Instagram: [ Ссылка ]
* LinkedIn: [ Ссылка ]
—
CONNECT WITH MICHAEL
* Twitter: [ Ссылка ]
* LinkedIn: [ Ссылка ]
—
ABOUT EDSPIRA AND ITS CREATOR
* [ Ссылка ]
* [ Ссылка ]
![](https://i.ytimg.com/vi/T7h98vJF4eo/maxresdefault.jpg)