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Glite Dictionary
🎭 A cover for plans 🐎 A hunting decoy 💰 An initial offer
stalking-horse

stalking-horse

9.9
A bidder chosen to set a minimum price and attract higher bids
  • noun
  • /ˈstɔːkɪŋ hɔːrs/
  • Specialized
translation icon : oferta inicial
  • As trustee, she recommended accepting the stalking-horse offer to encourage competitive bidding.

Examples

  • The company used a stalking-horse bid to attract more offers.

  • Lawyers negotiated protections for the stalking-horse bidder before advertising the sale to creditors.

  • The debtor's estate adopted a stalking-horse bid to maximize recovery at the auction.

  • A stalking-horse can help set a minimum price in auctions.

  • During the auction, the first bid was a stalking-horse designed to encourage higher offers from other bidders.

  • The investment firm acted as a stalking-horse in the bidding process, helping to establish a minimum price for the assets.

  • By using a stalking-horse bid, the company hoped to stimulate competitive bidding that would drive the final selling price higher.

Synonyms

bidder
vsstalking-horse
73 3.0

A person or company that offers to pay a price for something at an auction

serves as an initial accepted offer that sets a minimum to attract higher bids

How Strategic

stalking-horse
  • Specialized
9.9
initial offering
  • Specialized
1 6.7
offering
169 3.9

Surface Forms

stalking-horse singular
stalking-horses plural

Morphology

stalking-horse = stalking + horse (semi-transparent) = stalking + horse

Specialized financial usage is a metaphorical development from the 'decoy' sense and is functionally related but domain-specific.

Etymology

Stalking-horse keeps the hunting picture in business: a 'decoy' bidder at an auction is used to set a 'floor' or minimum price and draw other offers. So a stalking-horse bid is an early offer meant to protect value and encourage higher competing bids.