FirstGuppy Corp. has just received a purchase offer from FirstShark, an unfriendly suitor. Instead of accepting the offer, FirstGuppy attempts to merge with FirstMolly, a friendly alternative suitor. FirstMolly is a ______ in this instance.
A) Golden parachute.
B) Shark repellent.
C) White knight.
D) Crown jewel.
E) Lockup.

Question

Quizplus · Accepted Answer

FirstMolly is considered a "White knight" because it is a friendly company that comes to the rescue of a company facing a hostile takeover attempt by another company. In this context, FirstGuppy is seeking to merge with FirstMolly to avoid being taken over by FirstShark, an unfriendly suitor.