White Squire

A white knight is a company that comes to the rescue of a target company that is being acquired by a hostile bidder. The white knight typically offers a better deal to the target company's shareholders than the hostile bidder, and the target company's board of directors often recommends that the shareholders accept the white knight's offer.

A white squire is a variation on the white knight concept. A white squire is a company that is allied with the hostile bidder, but it offers a better deal to the target company's shareholders than the hostile bidder. The white squire typically offers to buy the target company at a higher price than the hostile bidder, and it also agrees to make certain changes to the target company's business that the target company's shareholders want.

White squires are often used as a way to avoid a hostile takeover. If the target company's shareholders accept the white squire's offer, the hostile bidder will be unable to acquire the target company.

There are a few key differences between white knights and white squires. First, white knights are typically not allied with the hostile bidder, while white squires are. Second, white knights typically offer a better deal to the target company's shareholders than the hostile bidder, while white squires typically offer a better deal than the hostile bidder, but not necessarily the best deal. Third, white knights are often seen as more legitimate than white squires, because they are not allied with the hostile bidder.

White squires can be controversial. Some people argue that they are just a way for hostile bidders to get around the rules of hostile takeovers. Others argue that white squires can be beneficial to target companies, because they can offer shareholders a better deal than the hostile bidder.

Ultimately, the decision of whether or not to accept a white squire's offer is a decision that must be made by the target company's shareholders.