Definition
A white squire is a friendly investor who takes a significant minority stake in a target — typically 10–20%. The position is usually accompanied by a standstill agreement that prevents the squire from increasing the position above an agreed cap or supporting hostile bids.
Why it works
A friendly large block makes it harder for a hostile bidder to reach the threshold needed for control. The squire’s vote can also tip board contests in management’s favor.
Risk
A white squire who later turns hostile (or sells the block to a hostile party) can become a Trojan horse. Standstill agreements try to prevent this but can have loopholes or expire.
Distinction
A white knight acquires the entire target. A white squire takes a defensive minority stake.