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.

by kaptaindave October 15, 2008