Stalking horse


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Stalking horse

In bankruptcy proceedings, this refers to the company that first bids for the companies assets.

Stalking Horse Bid

1. In a corporate bankruptcy in which the corporation wishes or is required to sell its assets, an initial bid on those assets by a third party chosen by the corporation. This is done to ensure that the bankrupt corporation does not have to settle for unacceptably low prices for its assets.

2. More generally, a "trial balloon" in which a third party approaches a person or company inquiring about the possibility of a (usually hostile) takeover. The party actually asking about the takeover remains anonymous so as to protect its reputational risk in case the idea does not meet with favor.
References in periodicals archive ?
That makes it completely impossible for me to contemplate me running as a stalking horse, even if I thought it the right thing to do, which I do not.
But in the midst of today's memories trots the stalking horse of war, with the prospect of renewed hostilities in Iraq an ever-growing reality.
Bankruptcy Court for the Southern District of Texas has approved Paragon Trade Brands, Norcross, GA, or its nominees and business affiliates to be the stalking horse bidder for the sale or acquisition of the disposable baby diaper business currently belonging to Drypers, Houston, TX.
Thus, whether your client should in fact come to the hearing unannounced or contract to become a stalking horse depends upon the nature of the asset being bought and the circumstances of the purchase.
City planning is often a stalking horse for social engineering; as a characteristic manifesto of New Urbanism declares, "Community planning and design must assert the importance of public over private values.
Antonio Negri's article, "Problemi di storia dello Stato moderno: Francia 1610-1650" (Rivista critica di storia della filosofia, 1967: 182-220) is a particular stalking horse.
Ammer takes us from scapegoat to skunk works to snake pit to snake-check with a stalking horse to peruse along the trail.
Furthermore, it is a stalking horse for similar anti-employee initiatives in other states.
Rebel members of the party are seeking a stalking horse candidate to stand against Mr Ashdown because they feel he is too close to Labour and Prime Minister Tony Blair.
They want to put up a stalking horse candidate because they think he's too close to Labour and PM Tony Blair.
In a recent letter to the Wall Street Journal, Fred Meister, president of the Distilled Spirits Council of the United States (DISCUS), provided a synopsis of his "drink is a drink is a drink" platform, often viewed by brewers as a stalking horse for tax equivalency.
Andy Jhawar, a Senior Partner of Apollo and Head of Apollo's Consumer and Food Retail Industry Group added, "Today's approval of the stalking horse agreement is a positive step toward saving some of America's most well-recognized and iconic brands.