The Black Knight

The definition of ‘black Knight’

Black knight-a company that makes unsolicited takeover offer for the target company. When a company faces a hostile takeover offer, the white knight may make a friendly takeover offer that allows the company to avoid a hostile takeover.

Breaking down the ‘black Knight’

Hostile takeover can be conducted through a tender offer, or by purchasing shares on the open market. White knight can help the target firm by offering terms for a friendly takeover. A gray knight is a company that offers an unsolicited bid, while another company is negotiating a takeover with the target firm. A yellow knight is a company which initiated a hostile takeover, but also change the tactics during the process to negotiate more pleasant conditions.

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