what is a white knight 
a white knight is a defense strategy used by a target firm that doesn t want to be acquired in a hostile takeover rather it seeks out a white knight a friendly individual or corporation that buys it at fair consideration just before being taken over by the unfriendly bidder an acquisition by a white knight is preferred to being taken over by a hostile acquirer because the target firm s management generally remains in place and its investors investors receive better compensation for their shares 