Gray Knight


DEFINITION of '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.


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."

  1. Takeover

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  2. White Knight

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  4. Black Knight

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  3. What are some common accretive transactions?

    The term "accretive" is most often used in reference to mergers and acquisitions (M&A). It refers to a transaction that ... Read Full Answer >>
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