another take on this, page-4

Sorry to use stockmarket jargon like 'greenmail'.

It is where a company accumulates a large stake in a target company and then goes through the motions of making a takeover offer which they fully expect will flush out a third party who is genuinely wanting to take-over the target.

Then geniune buyer then needs to deal with the company that has accumulated the blocking stake and agree on an appropriate take-over premium.

The initiating party then walks away with a handsome profit or colloquially greenmail (money notes being green USA).

Hope this clarifies.