Governance Lab

White Knight Defense

Shareholder Duty
Defensive Tactics

The Savior Trap

A hostile raider is at the gates. Your only hope is a "Friendly" acquirer—a White Knight.

But remember: Knights don't work for free.

The Raider

Offers cash but fires management and breaks up the company.

The Knight

Promises to keep the team, but demands "lock-up" assets.

The Board

Must maximize price (Revlon Duty) or face lawsuits.