Black knight

Black knight,

Definition of Black knight:

  1. Metaphorically speaking, differently-colored knights are used to identify the nature of a takeover. A takeover is the process wherein one company tables an offer to assume control of or acquire another company. The nature of black knights, specifically, is unwelcome and hostile.

  2. A person or company making an unwelcome takeover bid for another company.

  3. A black knight is a company that makes an unwelcome, hostile takeover bid. Management of the target company often doesn’t want to sell to a black knight company because they typically have sinister goals. As a result, black knight companies attempt to bypass the board of directors of a company in an effort to gain control.

  4. Corporate raider who makes an acquisition bid deemed unwelcome by the target firms management. The threatened management may then seek a white knight to rescue it.

How to use Black knight in a sentence?

  1. The black knight, of course, isnt the type to court a maiden with flowers but instead prefers a fast horse and a sack.
  2. Rather than give up, the black knight will seek out ways to conquer anyway, such as by initiating a tender offer directly to shareholders or engaging in a proxy fight.
  3. Black knights are often keen to generate a quick profit and target companies experiencing problems that they believe can be easily fixed to make it more valuable.
  4. A black knight is a company that makes an unwelcome, hostile takeover bid.
  5. Companies don’t want to be taken over by black knights, usually because their goals are destructive and don’t align with what management is trying to achieve.

Meaning of Black knight & Black knight Definition