(n) (corporation) the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the owners to buy those shares back at a premium in order to stay in business
The Collaborative International Dictionary of English (GCIDE) v.0.53
n. (Finance) The act, performed by a publicly traded corporation, of paying a corporate raider to give up a takeover attempt, by buying the shares of stock he owns; also, the threat posed by corporate raiders to take over a company unless their stocks are purchased by the company at a price giving them a large profit. [ Informal ] [ WordNet 1.5 ]
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