White knight

A company or individual which presents a preferable alternative to a target company facing an unsolicited or hostile takeover approach. The white knight may agree to acquire all or part of the business to prevent it falling into unwelcome hands at the request of the target company’s existing management. The term white knight can also be used to describe a company or individual rescuing a firm in financial difficulties from collapse even if no hostile bid exists.

This definition is for general information purposes only