White Knight

A white knight is a friendly acquirer that a target company's board of directors actively seeks out and invites to make a competing bid during a hostile takeover attempt — preferring the white knight's terms, culture, and intentions over those of the hostile bidder. By welcoming a white knight, the target company's board aims to protect employees, preserve corporate culture, maintain strategic independence within a more compatible ownership structure, and deliver better value to shareholders than the hostile offer provides. The white knight typically offers a higher price than the hostile bidder or more favourable non-financial terms — triggering a bidding war that generally benefits the target company's shareholders. In Indian capital markets, white knight scenarios have emerged in several high-profile corporate control contests. The white knight concept is part of a broader family of takeover defence terminology — alongside the grey knight (a less desirable but still preferred alternative bidder), the white squire (a friendly investor who acquires a minority stake to block the hostile bidder without taking full control), and poison pill defences.