Business, Legal & Accounting Glossary
A company which makes a hostile takeover bid on a target company.
A black knight is a hostile takeover attempt in which an unwelcomed firm offers to purchase a substantial number of shares in order to gain control of the target company. Black knights are interested in companies that are perceived to be undervalued.
The ultimate purpose of the majority of black knight hostile takeovers is profit. Black knights infiltrate the bidding process for enterprises seen to be potentially valuable. This value is calculated by the acquired assets of the target company, which can be deconstructed and sold to prospective purchasers.
Black knight is a term that is more frequently employed in public markets than in private markets. When a private middle-market firm is contacted by an unfavourable acquirer, the company will simply decline the offer and will avoid the possibility of a public market takeover or stock purchase.
White Knight
White Squire
Defensive Merger
Pre-offer Defenses
Post-Offer Defense
Shark Repellents
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This glossary post was last updated: 21st January, 2022 | 0 Views.