In business and finance, a "White Knight" refers to a company or individual that comes to the rescue of another company that is facing a hostile takeover attempt. The White Knight is seen as a friendly or preferred alternative to the hostile bidder, as it offers a solution that is more favorable to the target company's shareholders and stakeholders.

The White Knight typically enters into negotiations with the target company to propose a merger or acquisition deal that provides better terms, higher valuation, or more favorable conditions compared to the hostile bidder. The intention is to protect the target company from an unwanted takeover and preserve its operations, management, and corporate culture.

White Knights often have a strategic interest in the target company or believe in its potential for growth and profitability. Their intervention can be driven by various motivations, such as the desire to expand market share, gain access to new technologies or markets, or establish a stronger position in the industry.

While the involvement of a White Knight can be beneficial for the target company and its shareholders, it can also lead to complex negotiations and competing offers, potentially prolonging the acquisition process.