gray knight

Gray Knight

A second, unsolicited bidder in a corporate takeover. A gray knight enters the scene in order to take advantage of any problems between the first bidder and the target company.

Notes:

Think of a gray knight as a circling vulture waiting to pick clean the leftovers.

In some parts of the world gray is spelled "grey."

See also: Black Knight, Lady Macbeth Strategy, Takeover, White Knight, Yellow Knight

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Gray knight

In a merger or acquisitions, a gray knight is an acquiring company that outbids a white knight in pursuit of its own best interests, although it is friendlier than a hostile bidder.

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gray knight

A company, neither friendly nor hostile, that outbids another firm in an acquisition attempt.