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.

Payment of a premium to a raider trying to take over a company through a proxy contest or other means. In exchange of the premium, the raider accepts not to buy any more shares or to pursue any further the takeover for a specified number of years.

A situation in which a person or entity owns enough stock in a company to threaten a hostile takeover and is therefore albe to demand a price higher than the market value from the company to repurchase the stock and avoid the takeover

In corporate takeovers, the term refers to payment by a TARGET COMPANY to buy back shares owned by the potential acquirer at a premium over market. The acquirer in the exchange agrees not to pursue its hostile TAKEOVER BID. A special tax is imposed on greenmail payments.