cover bid

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Cover Bid

In an auction or other competitive sale, the second-highest bid. The term carries a slight connotation that the bidder was a plant who was simply trying to drive the price higher. This may or may not imply collusion.

cover bid

The second-highest bid in a competitive sale.
References in periodicals archive ?
It added that in 11 instances, the lowest bidder faced no genuine competition at all as all other companies involved in the tender had put down cover bids.
These will cover bids for seed funding from a Euro 155 million budget that will stretch until 2013, generally meeting 10% of costs for building energy infrastructure linking the 27 member states of the European Union (EU).
But his clause does not cover bids from rival English clubs.