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Home > QFINANCE Dictionary > Definition of knight

Definition of

knight

Mergers & Acquisitions

firm involved in takeover a term borrowed from chess strategy to describe a company involved in the politics of a takeover bid. There are three main types of knights. A white knight is a company that is friendly to the board of the company to be acquired. If the white knight gains control, it may retain the existing board of directors. A black knight is a former white knight that has disagreed with the board of the company to be acquired and has established its own hostile bid. A gray knight is a white knight that does not have the confidence of the company to be acquired.

Definitions of ’knight’ and meaning of ’knight’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’knight’ and other financial terms with our online QFINANCE Financial Dictionary.

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