WHITE KNIGHT

Today's word: WHITE KNIGHT
Theme for this fortnight: MERGERS & ACQUISITIONS

 

            A white knight is an individual or company that acquires a corporation on the verge of being taken over by forces deemed undesirable by company officials (sometimes referred to as a "black knight"). While the target company doesn't remain independent, a white knight is viewed as a preferred option to the hostile company completing their takeover. Unlike a hostile takeover, current management typically remains in place in a white knight scenario, and investors receive better compensation for their shares.