Stalking-Horse Bid

Stalking-Horse Bid
An initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.

This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company's assets. In essence, the stalking horse sets the bar so that other bidders can't low-ball the purchase price.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • 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. Bloomberg Financial Dictionary …   Financial and business terms

  • stalking horse — this is the name given to the party submitting the first bid to purchase assets. The stalking horse bid can be used to solicit interest from other bidders and also acts as an indicator for what will be realized on the auction floor (Glossary of… …   Glossary of Bankruptcy

  • Stalking horse — A stalking horse is someone or something whose role is to become the focal point for, or the initiator of, a debate or challenge. In reality, however, their leadership role may be an illusion, and the stalking horse is really working to promote a …   Wikipedia

  • stalking horse — USA In the context of bankruptcy sales, a stalking horse is a bidder used to establish the purchase price floor so other bidders can know the minimum to bid for the target company. Practical Law Dictionary. Glossary of UK, US and international… …   Law dictionary

  • Nortel — Networks Corporation Type Public OTC Markets Group: NRTLQ Industry Telecommunications …   Wikipedia

  • MatlinPatterson Global Advisors — MatlinPatterson Global Advisers Type Private Industry Private equity Founded 2002 F …   Wikipedia

  • Labour Party (UK) leadership election, 2007 — Labour Party (UK) leadership election 1994 ← 10 May 2007 (2007 05 10) 24 Ju …   Wikipedia

  • Alan Keyes — Alan Lee Keyes Keyes at a 2008 Presidential campaign rally …   Wikipedia

  • Conservative Party (UK) leadership election, 1995 — John Major The 1995 Conservative leadership election was initiated when incumbent leader and Prime Minister John Major resigned as leader on 22 June 1995, in order to face down critics within his party. On 4 July 1995 he was re elected, beating… …   Wikipedia

  • Circuit City Stores — This article is about the defunct company that operated from 1949 to 2009. For the online retailer owned by Systemax, see CircuitCity.com. Circuit City Stores, Inc. The final 2001 2009 logo Former type Public …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”