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post offer defense: green mail

what is it? Thanks.

haha some of the takeover defenses are hilarious IMO, like this one.

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You are the CEO, and a company wants to buy your firm out, a hostile takeover attempt is present. Then you use the cash of the firm to pay buy back the shares purchased by the company which wants to buy you (with a premimum of course) and you get rid of the takeover attempt.

What I don't get is how that could be legal under any system...

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while is still legal it has not been used since the 80's because the gain on the transaction is taxed at 50% percent.

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