A white knight is a friendly investor who comes to the rescue of a distressed business often in response to a hostile takeover offer.
Warren Buffett is perhaps the most famous practitioner of the white knight bid alive today. An example of one of his white knight style bids would be his recent bid on Constellation Energy. During the week of September 18th 2008, Constellation's stock fell 39% in a single day followed by a 19% down day on concerns that they would not be able to raise capital. Buffett then swooped in with a bid that was ultimately accepted about a 10% premium.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- 3 Reasons Apple Buying GoPro Would Be A Mistake
- 3 Tech Stocks That Soared This Week
- Here's Why Wells Fargo Is Much More Complicated Than Most People Give It Credit For
- 3 Battleground Biotech Stocks I Would Avoid at All Costs
- 3 Changes Congress Can Make Right Now To Improve Retirement
- The Marijuana Movement Gains Its Most Star-Studded Supporter Yet