In merger terminology, a white knight is:
A)Any suitor willing to bid more than the current share price for a firm
B)The successful bidder in a merger process
C)A suitor who acquires with cash rather than with stock
D)A friendly acquirer that will out-bid a hostile acquirer

Question

Quizplus · Accepted Answer

A white knight is a friendly acquirer that comes to the rescue of a target company that is facing a hostile takeover bid from another company (the black knight). The white knight offers a more attractive bidding price or better terms than the black knight, and the target company accepts the white knight's offer instead.

In Merger Terminology, a White Knight Is