Wordnet 3.0
NOUN (1)
1.
(corporation) the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the owners to buy those shares back at a premium in order to stay in business;
The Collaborative International Dictionary of English v.0.48:
greenmail \green"mail\ n. (Finance)
The act, performed by a publicly traded corporation, of
paying a corporate raider to give up a takeover attempt, by
buying the shares of stock he owns; also, the threat posed by
corporate raiders to take over a company unless their stocks
are purchased by the company at a price giving them a large
profit. [Informal]
[WordNet 1.5]
WordNet (r) 3.0 (2006):
greenmail
n 1: (corporation) the practice of purchasing enough shares in a
firm to threaten a takeover and thereby forcing the owners
to buy those shares back at a premium in order to stay in
business