# White Knight

*Corporate Finance & M&A — Finicade finance glossary*

A white knight is a friendly acquirer invited in to outbid a hostile one on terms management prefers. For shareholders it's usually good news, since it creates an auction. The variant worth watching is the white squire — a friendly investor taking a blocking minority stake rather than the whole company, which preserves independence without delivering a premium to anyone.

**Also known as:** friendly bidder, white squire

**Related terms:** [Hostile Takeover](https://finicade.com/glossary/hostile-takeover), [Tender Offer](https://finicade.com/glossary/tender-offer), [Poison Pill](https://finicade.com/glossary/poison-pill), [Break Fee](https://finicade.com/glossary/break-fee), [Mergers and Acquisitions (M&A)](https://finicade.com/glossary/mergers-and-acquisitions)

Source: https://finicade.com/glossary/white-knight