Stalking horse

(redirected from stalking-horse)
Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.

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.

Mentioned in ?

References in periodicals archive ?

A stalking-horse now might actually beat Brown with the danger of a nonentity becoming PM!

DAFYDD WIGLEY

Aceto announced that it has entered into a "stalking-horse" asset purchase agreement with an affiliate of New Mountain Capital, a leading growth-oriented investment firm with over $20 billion in assets under management, to sell its chemicals business assets for gross proceeds of $338 million in cash, plus the assumption of certain liabilities and subject to certain adjustments, on a cash-free and debt-free basis.

Aceto announces proposed sale of chemical business assets for $338M in cash

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.

Seneca foods in talks to buy aliens for $148M

21 May 2013 a[euro]" 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.