Stalking-horse Bid

What is Stalking-horse Bid?

An initial offer on a bankrupt company's assets by a potential buyer choosen by the fallen company.

Pete: I heard Cogswell Cog's is going bankrupt.

John: Yes, I heard Spacely Sprockets put a bid in to buy them.

Pete: Yeah I heard that too... but the way I heard it, Spacey just put in a stalking-horse bid and may not want Cogswell at all.

See liquidation, bankruptcy

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Stalking-horse Bid Edit Meaning