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.

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.
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JS used that escape hatch last week, missing the deadline to lock in its stalking-horse bid.
6m) plus liabilities, which is planned to serve as the stalking-horse bid for the auction of the bankrupt sector player.
The offer, which is subject to a working capital adjustment, will be submitted for court approval to constitute a stalking-horse bid in the near future, Seneca said.
It has received an initial or stalking-horse bid by a joint venture of Hilco Merchant Resources LLC and GWNE Inc, the documents showed.
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.