In a merger,a white knight is

Question

Quizplus · Accepted Answer

A white knight is typically a third company that comes to the rescue of a company facing a hostile takeover bid by purchasing the acquisition target before the unwanted suitor can. This third company is seen as a "knight in shining armor," hence the term "white knight." Option A is incorrect as an investment banker may be involved in the merger process, but they do not necessarily guarantee the merger's success. Option C is incorrect as an investor who buys at least 5% of shares would be known as a significant shareholder or activist investor, but they are not necessarily a white knight. Option D is incorrect as a commercial banker may provide financing for the merger, but they are not a white knight.

In a Merger,a White Knight Is