Friday, February 05, 2010


In the corporate world, we have many kinds of knights.

White Knight, Black Knight, Gray Knight and Yellow Knight

Do you know what they are?

A White Knight is a company that makes a friendly offer to a target company that faces a hostile bid. It is best remembered by the phrase: A White Knight to the rescue!

A Black Knight is the opposite of a White Knight. It is a company that makes a hostile bid to takeover a target company. A Black Knight is usually thought of as someone having unpleasant personalities and is normally associated with kidnapping nubile girls, burning villages and slaying peasants.

A Gray Knight or Grey Knight is best thought of as a waiting vulture waiting to scoop up any leftovers. It is actually an unsolicited second bidder in a corporate takeover.

A Yellow Knight is a company that attempts a hostile bid to a takeover but chickens out at the eleven hour and ends up with a friendly merger discussion instead.