Definition of Black knight:
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.
A person or company making an unwelcome takeover bid for another company.
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.
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?
- The black knight, of course, isnt the type to court a maiden with flowers but instead prefers a fast horse and a sack.
- 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.
- 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.
- A black knight is a company that makes an unwelcome, hostile takeover bid.
- 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