*1.White* knight In business, a white knight may be a corporation, a private company, or a person that intends to help another firm. There are many types of white knights. Alternatively, a gray knight&action=edit&redlink=1) is an acquiring company that enters a bid for a hostile takeover in addition to the target firm and first bidder, perceived as more favorable than the black knight&action=edit&redlink=1) (unfriendly bidder), but less favorable than the white knight (friendly bidder). The first type, the white knight, refers to the friendly acquirer of a target firm in a hostile takeover attempt by another firm. The intention of the acquisition is to circumvent the takeover of the object of interest by a third, unfriendly entity, which is perceived to be less favorable. The knight might defeat the undesirable entity by offering a higher and more enticing bid, or strike a favorable deal with the management of the object of acquisition. The second type refers to the acquirer of a struggling firm that may not necessarily be under threat by a hostile firm. The financial standing of the struggling firm could prevent any other entity being interested in an acquisition. The firm may already have huge debts to pay to its creditors, or worse, may already be bankrupt. In such a case, the knight, under huge risk, acquires the firm that is in crisis. After acquisition, the knight then rebuilds the firm, or integrates it into itself. Hostile firm's strategies The strategy that gets usually employed is making the offer more lucrative, so that the shareholders might reject the white knight's bid. However, this can lead to bidding wars and finally to overpaying for the target firm. 2008 - JPMorgan Chase acquired Bear Stearns allowing Bear Stearns to avoid insolvency after Bear Stearns stock price suffered a precipitous decline, with its market capitalization dropping by 92%. *2.White* Squire A white squire is similar to a white knight, except that it...