Legal Definitions - white knight

Definition: A white knight is a person or company that saves another company from being taken over by an unfriendly corporate raider. This can be done by buying a controlling interest in the target company or by making a competing offer.

Example: When Company A was in danger of being taken over by a corporate raider, Company B stepped in as a white knight and made a competing offer to acquire Company A. This allowed Company A to remain independent and avoid being taken over by the unfriendly corporate raider.

Explanation: The example illustrates how a white knight can rescue a company from being taken over by an unfriendly corporate raider. In this case, Company B acted as a friendly suitor and made a competing offer to acquire Company A, which allowed Company A to remain independent and avoid being taken over by the unfriendly corporate raider.