White knight

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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.

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