Raider Corporation (RC)attempted to take over Targetnorth Corporation (TC)using a tender offer.The tender offer price was twice the market price for TC shares.As a defense to this,TC proposed to buy its shares owned by RC at triple the market price provided RC agreed not to purchase any more TC shares for the next five years.This kind of tender offer defense is called:

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By proposing to buy its shares owned by RC at triple the market price provided RC agreed to not purchase any more TC shares for the next five years,TC used the tender offer defense of Greenmail.Refer: Figure 1

Raider Corporation (RC)attempted to Take Over Targetnorth Corporation (TC)using a Tender