Word: greenmailed
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Some Wall Streeters accused Pickens of "greenmail," the business world's version of blackmail. In a greenmail deal, an investor buys a large enough chunk of a company's stock to pose a takeover threat in the hope that its management will buy the shares at a premium. Pickens denies being a greenmailer, saying that he made a sincere bid to take over Phillips and that all company shareholders will benefit from his actions because the value of their stock will rise. The most venerable greenmail victim of 1984 was Mickey Mouse. Saul Steinberg, a New York City financier, bought...
Blackmail by Greenmail...
Your reference to me as a "sometime greenmailer" [ECONOMY & BUSINESS, June 25] is inaccurate. During the Gulf Investors Group's bid for Gulf, we were offered $70 a share on all our stock. The market price then was $54. We flatly declined the greenmail because the same offer was not made to all Gulf shareholders. In fact, I support any legislation that prohibits greenmail...
Walt Disney Productions and St. Regis Corp., the forest-products firm, have both been victims of greenmail. In a greenmail ploy, an investor buys enough stock in a company to pose a takeover threat in hopes that the firm's officers will buy him out at a premium. Disney paid $297.4 million in June for shares held by Financier Saul Steinberg, who made a quick $32 million profit. St. Regis has been greenmailed twice, first by Sir James Goldsmith, the British industrialist, and then by Loews Corp., the hotel and movie-theater company...
Last week Disney and St. Regis faced the fact that greenmail is like blackmail: a company that pays once merely invites new demands. Australian Publisher Rupert Murdoch, who owns 5.6% of St. Regis, said that he was raising $757 million to buy 50.1%. Meanwhile, a group of investors headed by Financier Irwin Jacobs revealed that it had bought 5.8% of Disney and wanted more. St. Regis and Disney took no immediate action in response to the moves by Murdoch and Jacobs. The companies will surely think twice before paying more greenmail...