TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

OFFRE-PARAVENT [1 record]

Record 1 2012-02-08

English

Subject field(s)
  • Investment
  • Amalgamation and Partnerships (Finance)
  • Bankruptcy
CONT

A stalking horse bid is an initial proposal to buy an asset from a distressed company (most often one that is bankrupt or in bankruptcy protection). Usually, the company or its receiver will select a buyer willing to make an offer. The idea is to establish a minimum price for the asset, by getting a first bid out in the open. This keeps lowball offers off the table and sets up a competitive bidding process. The stalking horse bidder usually gets a break fee if it doesn't end up as the eventual winner.

French

Domaine(s)
  • Investissements et placements
  • Fusion, absorption et coparticipation (Finances)
  • Faillites

Spanish

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