white squire defense

white squire defense

An antitakeover strategy in which a takeover target places a block of its stock in the hands of an investor deemed sympathetic to management. Having a white squire decreases the possibility of a takeover because the suitor must acquire a significantly greater proportion of the remaining shares in order to complete the takeover. However, the white squire may become disenchanted and put its block of stock up for sale, or it may itself mount a takeover attempt.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.