White knight
White knight is a friendly competing bidder that a target management likes better than the company making a hostile offer; the target solicits a merger with the white knight as a preferable alternative.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- White knight. A friendly competing bidder that a target management likes better than the company making a hostile offer; the target solicits a merger with the white knight as a preferable alternative.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- White knight. A company that is acceptable to the management of a firm under threat of a hostile takeover and that will compete with the potential acquirer.
According to the Strategic Management by David and David (15th edition),
- White knight. When a firm agrees to acquire another firm at a point in time when that other firm is facing a hostile takeover by some company.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
