A targeted stock repurchase of the firm directed at a potential bidder to discourage an unfriendly takeover attempt is called (a):
A) Golden parachute.
B) Standstill.
C) Greenmail.
D) Poison pill.
E) White knight.

Question

Quizplus · Accepted Answer

Greenmail refers to the strategy where a company buys back its own shares at a premium from a potential bidder to prevent an unfriendly takeover, often with the agreement that the bidder will not seek to purchase any more shares for a certain period of time.

A Targeted Stock Repurchase of the Firm Directed at a Potential