cover bid

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 ?
At the same time, the high-level of buy side interest shows the importance bidders place on having an open view of how others value a particular pool of loans and knowing the cover bid.
Tender is invited in two cover bid system (through e-portal, hard copies are not accepted) consisting of both technical and Financial bids for providing above services from the registered travel agencies.
While the winning bidder ended up being from New York, the cover bid was from a hotel operator in California," said Malka.
In terms of other offences that do not cover bid rigging, fraud and bribery but other wrongdoing known as "sanctionable practices", 91 entities received other sanctions in the seven months of 2013 compared to 5 in 2012 and 1 in 2011.
The inquiry found that out of the five undertakings, four entered into a joint venture agreement to collectively bid for the tender, while the fifth submitted a cover bid to give the impression of competitive bidding.
The report found that, prima facie, five companies involved in the supply of HT PC and LT PC poles had colluded to rig the tender and derive artificially high profits by signing a joint venture agreement and arranging for a cover bid, as well.
The Enquiry Report found that five companies involved in the supply of HT PC and LT PC poles had colluded to rig the tender and derive artificially high profits by signing a joint venture agreement and arranging for a cover bid, as well.
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.
In Bulgaria, the most common bid-rigging practices were cover bidding, where some bidders put in offers knowing that the amounts demanded were too high or contained unacceptable conditions; bid suppression, where one or more bidders abstain from putting in offers or withdraw their offers; bid rotation, where the bidders take turns being the designated contract winner; subcontract bid-rigging, where tender participants agreed not to put in offers or make cover bids on the condition that part of the contract activities are subcontracted to them; and splitting the market, where companies agree to carve out segments of the market or geographic locations for themselves in order to reduce competition.