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gray knight

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Financial Dictionary

Gray Knight

A second, unsolicited bidder in a corporate takeover. A gray knight enters the scene in order to take advantage of any problems between the first bidder and the target company.

Investopedia Commentary

Think of a gray knight as a circling vulture waiting to pick clean the leftovers.

In some parts of the world gray is spelled "grey."

Related Links

Bloodletting And Knights: A Medieval Guide To Investing
The Wacky World of M&As

See also: Black Knight, Lady Macbeth Strategy, Takeover, White Knight, Yellow Knight

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Financial Dictionary

gray knight

A company, neither friendly nor hostile, that outbids another firm in an acquisition attempt.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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