Stalking horse

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Stalking horse

In bankruptcy proceedings, this refers to the company that first bids for the companies assets.
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
References in periodicals archive ?
When hunting was the major source of food, hunters often used stalking horses as a means of sneaking up on their prey.
It is able to use black politicians and civil rights organizations as stalking horses in its fight to protect its education monopoly.
Talk of stalking horses and plots to strap a Parliamentary parachute to Boris Johnson are self-defeating.
Those procedures would allow the trustee to find one or more "stalking horses" that would put down an initial bid.
of California-Santa Barbara) takes the two figures as stalking horses for the confrontation between New World and Old World beliefs when European settlers arrived.
But, sadly, I already spot the "stalking Horses" of ridiculous envy.
These seemingly unassuming images become stalking horses for inconspicuous distress signals worming their way toward our attention in Reeb's quieter paintings.
In these situations, defendants allege that probation and parole officers are acting as "stalking horses" for the police.
(66) However, the "stalking horse" theory may have suffered a fatal blow in the Knights case.
Court of Appeals for the Second Circuit recently said that the "stalking horse" theory is not a valid defense in that circuit, (72) and the U.S.
Mr Smith said: "Stalking horses should stay in their stables."
The outburst from normally loyal Mr Smith comes amid speculation of a stalking horse challenge to Mr Blair as issues such as the war on Iraq and privatisation of public services fuel unrest.