Yellow Knight

Yellow Knight

A company that offered a hostile takeover but has since changed its mind and decided to discuss a merger. A yellow knight's management may decide that a hostile takeover would be too expensive or otherwise difficult but still believes that the target company would be advantageous. The term is derogatory and implies that the acquiring company (who would have been a black knight) has cold feet or has gone "yellow." One would expect the term to be used by the board, management, or even employees, rather than shareholders.
References in periodicals archive ?
Most notably as a Blue Force Tracker in ISAF, as the prime C2 system during 2011's large-scale Danish Division EXERCISE YELLOW KNIGHT, and at the Defence Academy and the Royal Military School.
We got our tickets and grabbed our color-coded banners ($1) to wave in support of our appointed Yellow Knight.