What is greenmail strategy?

Greenmail is a practice whereby a greenmailer buys up a substantial block of a company’s shares and threatens a hostile takeover. The target company can resist the takeover attempt by repurchasing its shares at a premium from the greenmailer. Greenmail became more frequent and controversial during the 1980s.

Is greenmail illegal?

Greenmail is a corporate business tactic used by those that are financially savvy. Many countertactics have been applied to defend against and to financially engineer the reception of a greenmail. There is a legal requirement in some jurisdictions for companies to impose limits for launching formal bids.

Who are killer bees in finance?

Killer bees are companies or individuals—such as investment bankers, accountants, attorneys, and tax specialists—that help target firms avoid being taken over by an unwanted suitor.

What is synergy how synergy is created explain?

Synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts. If two companies can merge to create greater efficiency or scale, the result is what is sometimes referred to as a synergy merge.

What is a poison pill defense?

Key Takeaways. A poison pill is a defense tactic utilized by a target company to prevent or discourage hostile takeover attempts. Poison pills allow existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of a new, hostile party.

Who are killer bees discuss?

These so-called “killer” bees were established when bees from southern Africa and local Brazilian honey bees mated. The Africanized bee was first identified in Brazil in the 1950s, but it quickly spread through Central and South America after a handful of swarms escaped quarantine.

What does white knighting a girl mean?

In internet slang, a white knight is a man who comes to the unsolicited defense of a woman online, in the hopes of romantic or sexual favor. A white knight can also more generally refer to someone who rushes to the defense of another online, usually a person whose actions aren’t seen as worthy of defense.

What are examples of synergy?

Examples of synergies in the business world include business mergers, combining or creating compatible product lines, and creating cross-disciplinary work groups.

What are the types of synergy?

The following are the main types of synergies that corporations enjoy:

• Marketing synergy.
• Revenue synergy.
• Financial synergy.
• Management.
• Savings on human resources costs.
• Costs incurred in acquiring technology.
• Distribution network.

What is poison pill in M&A?

A poison pill is a defense tactic utilized by a target company to prevent or discourage hostile takeover attempts. Poison pills allow existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of a new, hostile party.

Which is the best definition of Whitemail strategy?

DEFINITION of ‘Whitemail’. Whitemail is a strategy that a takeover target can use to try to thwart a hostile takeover attempt. Whitemail involves the target firm issuing a large amount of shares at below-market prices, which are then sold to a friendly third party.

What does Whitemail mean in the stock market?

Whitemail is a strategy that can be used to fend off an unwanted takeover attempt. It involves issuing shares at a below market price and selling them to friendly a third party. If the whitemail strategy is successful in discouraging the takeover, then the company can either buy back the issued shares or leave them outstanding.

How does Whitemail work in a hostile takeover?

Whitemail is a defensive strategy that a takeover target can use to try to thwart a hostile takeover attempt. Whitemail involves the target firm issuing a large number of shares at below-market prices, which are then sold to a friendly third party.

What does Whitemail mean in terms of fundraising?

In fundraising, whitemail is a donation received without a response form, coupon, statement, or other source identification, so it cannot be attributed to any particular fundraising campaign. These donations often come in generic, white-colored envelopes. This section does not cite any sources.