alleryStart learning →A white knight is a friendly investor that
ALaunches a hostile bid
BRescues the target
CSells poison pills
DAudits the deal
Answer & Solution
Correct answer: B. Rescues the target
A white knight acquires the target at a fair price with board support, often to beat a hostile bidder.
Keep practising Mergers Acquisitions and Corporate Restructuring
Browse all Mergers Acquisitions and Corporate Restructuring questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In a management buy-in (MBI), the shares are bought bySenior LBO debt is secured and carriesWhich target suits an LBO best?Debt is cheaper than equity in an LBO since interestIn a leveraged buyout, the target's assets often serve asWhich US law requires shareholder votes on future golden parachutes?A golden parachute pays an executive onA gray knight is a bidder seen as