Stalking horse bid

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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The creation of Currax Holdings USA LLC follows the Highbridge funds' acquisition of substantially all the assets of Pernix, including the rights to all Branded and generic products, per the firm's previously disclosed "stalking-horse bid" for USD 75.6m in the form of cash and credit bid consideration.
The agreement comprises the initial "stalking-horse bid" in the auction process, which is subject to higher and better offers.
Seneca said its purchase agreement will serve as the "stalking-horse bid" in the auction process, meaning Seneca has the opportunity to match any other bids Aliens might receive.
JS used that escape hatch last week, missing the deadline to lock in its stalking-horse bid.
Last week the Freedom's bankruptcy judge allowed the participants in the auction -- which include not only Tribune, the owner of the Los Angeles Times and the San Diego Union-Tribune, but also Digital First Media of Denver (owner of the nearby Los Angeles Daily News and Long Beach Press-Telegram) and a team consisting of Freedom's chief executive and a local real estate mogul -- to extend the period to make a "stalking-horse bid," on the company.
The agreement comprises the initial "stalking-horse bid" in the auction process, which are subject to higher and better offers.
17 December 2013 - US canned fruits and vegetables processing firm Seneca Foods Corp (NASDAQ:SENEB) on Tuesday said it had inked a deal to buy domestic Allens Inc for USD148m (EUR170.6m) plus liabilities, which is planned to serve as the stalking-horse bid for the auction of the bankrupt sector player.
It has received an initial or stalking-horse bid by a joint venture of Hilco Merchant Resources LLC and GWNE Inc, the documents showed.
The stalking-horse bid needs to be approved by both LightSquared and the judge before an auction is launched.
21 May 2013 - The chairman of US pay-TV company Dish Network Corp (NASDAQ:DISH) has made a USD2bn (EUR1.6bn) stalking-horse bid for radio frequencies that belong to bankrupt wireless-broadband firm LightSquared Inc, Bloomberg reported today, quoting sources.
27 June 2012 a[euro]" US architectural wood products distributor Rugby Architectural Building Products said on Wednesday it had, via a stalking-horse bid, taken over bankrupt Oregon-based sector company Lumber Products Inc.