stalking horse bid

stalking horse bid
In bankruptcy proceedings, this refers to first bid for the companies assets. This is the bid to beat. If there are multiple bids, often there is a bankruptcy auction. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Stalking-Horse Bid — An initial bid on a bankrupt company s assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid. This method allows the distressed company to… …   Investment dictionary

  • stalking horse — this is the name given to the party submitting the first bid to purchase assets. The stalking horse bid can be used to solicit interest from other bidders and also acts as an indicator for what will be realized on the auction floor (Glossary of… …   Glossary of Bankruptcy

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