Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Law, Transactions, & Risk Management
  • Business Transactions, Antitrust, & Securities Law

White Squire - Explained

What is a White Squire?

Written by Jason Gordon

Updated at April 16th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is a White Squire?What does a White Squire Do? Example of a White Squire DefenseAcademic Research on White Squire

What is a White Squire?

A white squire is an individual or a friendly firm that saves the target company from a hostile takeover by acquiring a stake in it. This approach is almost similar to that of the white knight pattern. Unlike the white knight, the target firm doesn't have to compromise with its independence or authority as the white squire just purchases a small portion of shares in the firm.

Back To: BUSINESS LAW

What does a White Squire Do? 

A white squire refers to a friendly acquisition that doesn't have any interests of owning the firm. It ensures that it can block the bidding firm with its stake, and further, offer the target firm an option to review its plan. In return, the white squire may become a board member, receive shares at a discounted price, or get dividends. 

When the unfriendly acquirer or the black knight takes his bid back, the white squire will prefer selling its shares. For avoiding any switching related conflicts ahead, the target company can formulate the contract in such a manner that the shares of the white squire wont serve any purpose to the hostile bidding firm.

Back to: Business Transactions
white squire

Was this article helpful?

Yes
No

Related Articles

  • International Securities Identification Number (ISIN) - Explained
  • Liquidation Preference - Term Sheet Provision
  • Recoupment - Explained
  • Regulation D Securities Exemption - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand