What is a white knight?
What will be an ideal response?
Answer: When a hostile takeover appears to be inevitable, a target company will sometimes look for another, friendlier company to acquire it called a white knight.
The white knight will make a more lucrative offer for the target than the hostile bidder. Incumbent managers of the target maintain control by reaching an agreement with the white knight to retain their positions.
One variant on the white knight defense is the white squire defense. In this case, a large investor or firm agrees to purchase a substantial block of shares in the target with special voting rights.
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A) market share. B) short-range forecasting. C) long-range forecasting. D) pricing. E) market potential.
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a. ready and able for b. unwilling to take on c. ineffective and inappropriate for d. none of these
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A) 30-year U.S. Treasury bonds B) securities that have a maturity of less than one year C) all securities paid for with the proceeds of a money-market account D) any security that is paid for with cash