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 ?
It is about time the Labour party brought deselection back and put one stalking horse out to grass.
In the event that approval as the stalking horse bidder by the US Bankruptcy Court is received, the agreement between Granges and Noranda will set the floor for any other qualified bidder.
NYSE: RICE), an independent natural gas and oil company, has signed a stalking horse asset purchase agreement with a subsidiary of Alpha Natural Resources Inc.
After weighing its advantages and drawbacks, we decided not to submit a stalking horse bid," wrote Mirman in a note to Freedom employees.
A stalking horse bidder is common in buying assets out of bankruptcy.
The question related to recent reports about the possibility of a stalking horse coming forward to force a leadership contest in the Conservative Party.
Other bids would have to top it by paying a "breakup fee" that the stalking horse would be entitled to.
In November 2011, Geron filed a stalking horse contract to sell the property for $10 million and hired GA Keen to negotiate the contract and market the property.
Presumably, Sun will use its stalking horse to outbid rivals again and retain possession of a leaner, more profitable Friendly's that is in position to deal with the new economic climate.
Borders intended for Najafi to be the stalking horse bid for an auction today.
Stalking Horse by Continuum is a new a commissioned by the and Portland Green Cu Projects.
US communication equipment and software company Avaya Inc has made a stalking horse bid of USD475m (EUR337m) for Nortel's business.