Written By
Paul Tracy
Updated June 13, 2021

What is Bankmail?

Bankmail is a bank's promise that it will finance a company's takeover bid and not help the other bidders.

How Does Bankmail Work?

Let's say Company XYZ wants to buy Company ABC. Three other companies are also interested in purchasing Company ABC.

Company XYZ wants to borrow most of the money for the acquisition offer. It goes to Bank DEF for the money, but it engages in bankmail. That is, it negotiates a deal in which Bank DEF, which is the largest in the country, will lend Company XYZ the money for the deal and that it will not lend money to the other three companies for the deal.

In this way, Company XYZ effectively shuts off a source of capital to the other bidders.

Why Does Bankmail Matter?

Bankmail can give bidders a potential advantage in winning deals, because if they can prove funding from a large, reputable bank that other bidders can't use, the sellers may feel more secure that the deal will get done and funded. Additionally, locking up Bank DEF (in our example) might mean that the other three bidders will have to secure funds from other banks at higher costs.

Activate your free account to unlock our most valuable savings and money-making tips
  • 100% FREE
  • Exclusive money-making tips before we post them to the live site
  • Weekly insights and analysis from our financial experts
  • Free Report - 25 Ways to Save Hundreds on Your Monthly Expenses
  • Free Report - Eliminate Credit Card Debt with these 10 Simple Tricks
Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Bankmail.
Be the first to ask a question

If you have a question about Bankmail, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

If you have a question about Bankmail, then please ask Paul.

Ask a question Read more from Paul
Paul Tracy - profile
Ask an Expert about Bankmail

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms