gray knight

gray knight definition - finance
A potential acquirer who outbids a white knight in an unfriendly takeover attempt. A white knight is a person who is asked to acquire a company as an alternative to an unwanted black knight, who is the investor initiating a hostile takeover bid. The new bidder, the gray knight, is not as preferable as the white knight, however the gray knight is still a better option than the black knight.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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