White squire

The investor generally takes a limited holding rather than offering to acquire the whole company. The stake can alter voting or ownership dynamics, depending on its size, rights and applicable rules. The arrangement may involve commitments, influence or costs that affect other shareholders, so assess pricing, control, conflicts and exit terms. Distinguish a white squire from a white knight seeking a full acquisition and from an ordinary passive shareholder. Whether the investment can lawfully frustrate a bid requires the actual jurisdictional and transaction framework.