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Stalking-Horse Bid

Updated on August 29, 2023

Stalking-Horse Bid is the preliminary bidding option on the assets of a bankrupt firm. This bidding is arranged before the start of the auction bid. In this, the insolvent company selects a bidder to make the opening bid on the remaining properties or assets out of the pool of bidders. It is done to set the minimum bid value, and other bidders cannot bid an offer below the set amount.