BROWSE

Yellow Knight

What is 'Yellow Knight'

A company that was once making a takeover attempt but ends up discussing a merger with the target company. Yellow knights have various reasons for backing out of the takeover attempt, but frequently are attributable to the target company's ability to fend off takeover. The "yellow" in "yellow knight" may refer to the color's association with cowardice. Since a yellow knight backs down from a takeover attempt and retreats to merger discussions, a yellow knight may be viewed as weak.

Explaining 'Yellow Knight'

In mergers and acquisitions (M&A), various colored knights are used to identify the nature of a takeover or potential takeover. A black knight is a company that makes a hostile takeover offer for the target company. A white knight makes a friendly takeover offer to a target company that is being faced with a hostile takeover. A gray knight (sometimes spelled grey knight) is a second unsolicited bidder in a corporate takeover.


Further Reading


Response of yellow perch to changes in the benthic invertebrate community of western Lake Erie
www.tandfonline.com [PDF]
In the western basin of Lake Erie, benthic invertebrate abundance and community composition have changed dramatically over the past five decades, as have abundance and growth of yellow perch Perca flavescens. Before 1950, large benthic invertebrates …

Do water level fluctuations influence production of walleye and yellow perch young-of-the-year in large northern lakes?Do water level fluctuations influence production of walleye and yellow perch young-of-the-year in large northern lakes?
www.tandfonline.com [PDF]
In the western basin of Lake Erie, benthic invertebrate abundance and community composition have changed dramatically over the past five decades, as have abundance and growth of yellow perch Perca flavescens. Before 1950, large benthic invertebrates …

The Shortage of China's Peasant-workers, and the Surplus of the Rural Labor Force in China <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLSJ201111003.htm' />The Shortage of China's Peasant-workers, and the Surplus of the Rural Labor Force in China [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLSJ201111003.htm'>PDF]
In the western basin of Lake Erie, benthic invertebrate abundance and community composition have changed dramatically over the past five decades, as have abundance and growth of yellow perch Perca flavescens. Before 1950, large benthic invertebrates …

“I could Paint Still Life as well as any one on Earth”: Charlotte Perkins Gilman and the World of Art“I could Paint Still Life as well as any one on Earth”: Charlotte Perkins Gilman and the World of Art
www.tandfonline.com [PDF]
In the western basin of Lake Erie, benthic invertebrate abundance and community composition have changed dramatically over the past five decades, as have abundance and growth of yellow perch Perca flavescens. Before 1950, large benthic invertebrates …

Mushroom Consumption Behavior and Influencing Factors in a Sample of the Portuguese PopulationMushroom Consumption Behavior and Influencing Factors in a Sample of the Portuguese Population
www.tandfonline.com [PDF]
In the western basin of Lake Erie, benthic invertebrate abundance and community composition have changed dramatically over the past five decades, as have abundance and growth of yellow perch Perca flavescens. Before 1950, large benthic invertebrates …

Exploring the financial value of a reputation for corporate social responsibility during a crisisExploring the financial value of a reputation for corporate social responsibility during a crisis
link.springer.com [PDF]
In the western basin of Lake Erie, benthic invertebrate abundance and community composition have changed dramatically over the past five decades, as have abundance and growth of yellow perch Perca flavescens. Before 1950, large benthic invertebrates …



Q&A About Yellow Knight


Does a yellow knight make an offer or discuss merger options?

Discusses merger options.

Why does the yellow knight back out of the takeover attempt?

The reason for backing out of the takeover attempt may be attributed to the target company's ability to fend off takeover.

Is a yellow knight viewed as weak or strong?

Weak.

How do you identify gray knights in M&A ?

They are unsolicited bidders who enter into negotiations after another bidder has made an offer on the same target company .

What does it mean that uncertainty generates imperfect market structures?

It means that when there are uncertainties in the market, people will not be able to make perfect decisions because they do not have enough information. They may also be afraid to take risks if they believe that their actions could lead to negative consequences. This can cause problems for businesses because they need consumers to buy their products in order to stay profitable. If consumers are too scared or uncertain about buying something, then businesses will lose money and eventually go out of business.

What color is associated with cowardice?

Yellow.

What is a yellow knight?

A company that was once making a takeover attempt but ends up discussing a merger with the target company.

How do you identify white knights in M&A ?

They make friendly takeover offers to companies being faced with hostile takeovers .

Why did economists distinguish risk from uncertainty?

Economists distinguished risk from uncertainty so that they could better understand how economic agents behave differently when faced with different types of situations. For example, investors invest in risky investments (such as stocks) because they want a high return on their investment; however, savers tend to avoid risky investments because they might lose all their money if the stock market crashes or if inflation rises significantly over time (which would decrease the value of their savings). These two groups have different preferences for risk and thus act differently when faced with similar situations (i.e., both groups would prefer lower inflation rates than higher inflation rates). Thus, by distinguishing between risk and uncertainty, economists were able to more accurately predict how people would act under certain circumstances which helped them design better policies for governments around the world (i.e., policies meant to help improve economies).

What is the definition of Knightian uncertainty?

Knightian uncertainty is a lack of any quantifiable knowledge about some possible occurrence.

How do you identify black knights in M&A?

They make hostile takeovers offers.

Who was Frank Knight?

Frank Knight was an economist who lived from 1885 to 1972. He worked at the University of Chicago and wrote a book called "Risk, Uncertainty, and Profit".

Who are some other types of knights in mergers and acquisitions (M&A)?

Black, white, gray (sometimes spelled grey).