In a merger, a white knight is:
A)a helpful investment banker that makes sure the merger is successful.
B)a third company that buys the acquisition target before an unwanted suitor can.
C)an investor who pays a high price to buy at least 5% of the shares of the acquisition target.
D)a commercial banker that provides a guarantee that the financing for the merger will be available.

Question

Quizplus · Accepted Answer

A white knight refers to a third party on the scene, whose function is to save the target company by buying it out, thus thwarting the undesired suitor.

In a Merger, a White Knight Is