Legal Definitions - friendly suitor

Definition: A friendly suitor is a person or corporation that rescues a company from an unfriendly corporate takeover. This is done by acquiring a controlling interest in the target corporation or by making a competing tender offer. It is also known as a white knight.

Example: Company A is being targeted by Company B for a hostile takeover. However, Company C steps in and offers to acquire Company A instead, saving it from being taken over by Company B. Company C is the friendly suitor or white knight in this scenario.

Explanation: The example illustrates how a friendly suitor can save a company from being taken over by an unfriendly corporate raider. In this case, Company C is the friendly suitor that rescues Company A from being taken over by Company B. This can happen when the friendly suitor sees potential in the target company and wants to acquire it for strategic reasons, rather than just for financial gain.