post offer defense: green mail green

SkipE99

what is it? Thanks.

tikfed

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...

chandsingh

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

giants2010

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