white knight


Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.

White knight

A friendly potential acquirer sought out by a target firm that is threatened by a less welcome suitor.

White Knight

Informal; an acquiring company in a friendly takeover. One usually refers to a white knight when the target company would be otherwise subject to a hostile takeover. That is, the white knight rescues the target company from the prospect of the hostile takeover. While the target company does not remain independent, it is able to negotiate terms with the white knight. Management usually remains in place and shareholders are often paid a higher price. See also: Black Knight, Gray Knight.

white knight

A person or company that rescues a target firm from a takeover attempt by buying the firm. Compare raider. See also hostile tender offer, shark repellent, white squire.

White knight.

A corporation that is the target of a hostile takeover sometimes seeks out a white knight that comes to the rescue by making an offer to acquire the target company in a friendly takeover that suits the needs and goals of the target's management and board.

The hostile acquirer is called a black knight, and if the white knight is outbid by a third potential acquirer, who is both less friendly than the white knight and more friendly than the black knight, the third bidder is called a gray knight.

white knight

see TAKEOVER BID.

white knight

see TAKEOVER BID.
References in periodicals archive ?
If management usually makes good decisions, it will probably also make good decisions when it makes a bid as a white knight.
103) At least one court has held that break-up fees paid to a white knight are deductible as a business expense under section 162.
A target corporation arranged to be acquired by a white knight as a hostile takeover defense.
White Knight Chronicles II takes players back to the magic-infused kingdom of fantasy, swordplay and myth.
Ultimately, White Knight Two is to carry the space plane to altitude, where it will then detach and head for suborbital space flights.
This study explores the validity of the maximum synergy and overbidding hypotheses of white knight corporate acquisitions.
The IRS, as noted in TAM 8945003, would also require capitalization of the white knight costs.
The video depicts a SpaceShipTwo attached underneath a White Knight 2 rising taking off from a runway in New Mexico and climbing to 50,000 feet.
In a corporate control contest for the acquisition of a target, the white knight bid is different from those made by hostile bidders.
About White Knight Resources, LLC White Knight Resources, LLC is a private, independent oil and gas company with an operational strategy to extend field development through drilling, workovers and enhanced field operating efficiency.
But he said: "I don't think there will be a white knight type of person for this club.