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When a company is the target of a hostile takeover attempt, one way to prevent the hostile takeover is to find a different firm to make a better offer. If the target finds such a "friendly" firm to take it over, the friendly firm is known as a white knight. The phrase "white knight" is also used to describe a firm that saves a firm on the verge of bankruptcy by acquiring it. For example, J.P. Morgan was referred to as a white knight when it acquired Bear Stearns during the 2008 financial crisis. You can read more about the acquisition of Bear Stearns here: https://www.cnbc.com/2018/03/14/a-decade-after-its-fire-sale-deal-for-bear-a-look-at-what-jp-morgan-got-in-the-bargain.html The White Squire Defense is a variation of the White Knight; with the White Squire, an investor prevents a hostile takeover by purchasing a significant stake (but not a controlling stake) in the takeover target. Because the investor (the white squire) does not obtain a controlling stake in the target, the target maintains its independence. When Gannett attempted a hostile takeover of Tribune Publishing, billionaire Patrick Soon-Shiong came to the rescue by purchasing a significant stake (but not a controlling stake) in Tribune Publishing. You can read more about this here: https://www.wsj.com/articles/tribunes-unlikely-ally-health-care-billionaire-patrick-soon-shiong-1464038590— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com
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