We observe negative stock price reactions to Greenmail deals. Why does this happen?

		Because these deals indicate that the company may issue equity in the future, thus diluting the value of existing shares.
		Because these deals generate an adverse selection problem, as the company pays to buy back shares whose value is unknown
		Because both the inflated price paid by the company to buy back its shares and the reduced likelihood of a takeover hurt the shareholders
		Because it is pointless for the company to buy back its own shares.