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    Using White Knights to Avoid Takeover

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    To avoid a hostile takeover, a company may seek the help of a "white knight" or perform strategies of their own. What exactly does this mean, and how is it accomplished?

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    The white knight is used by companies that are facing a hostile takeover. When a hostile takeover takes place, the intervention of a white knight has been known to be extremely effective. The hostile takeover lands on the specific premise that the buyer has to gain ultimate control over the target corporation being acquired in the hostile takeover, to force the target to agree to the sale. . It has been found that "the higher the likelihood of a white knight intervention after a hostile bid, the higher will be the takeover ...

    Solution Summary

    The solution gives 327 words on how a white knight can be used to avoid a hostile takeover from another company. 1 reference included.