Saturday, June 13, 2015

Term of the Day: Stalking-Horse Bid

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June 13, 2015
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.

Investopedia Explains:

This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid...

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