Stalking Horse Agreement Definition
Jeremiah: The wind is right, but it will not work soon unless we get out of these trees. Bear Claw: Trick to it. Go this side of your horse. Jeremiah: What if he sees our feet? Bear Claw: Elan doesn`t know how many feet a horse has!  The term is widely used in politics and economics. In politics, circumstances may involve an attempt to overthrow a powerful leader, usually by members of their own party. They may also include the introduction of a bill by a small party representative who also acts in the interest of a silent partner, for example. B a broader and less risky political party. In the economy, circumstances are an attempt to test the market for a possible (hostile) acquisition of a business. In any event, it is clear that the anonymous party, whether a company or an individual, has a valuable reputation that could be tarnished by failure. The harassment horse is an exercise in accurately assessing the degree of risk, so that a total challenge is only accomplished by the main party if there is a real probability of success.
The process of offering stalking horses may at first seem confusing. Our recommendation is to work with law and finance specialists to help you manage the process as a potential buyer or troubled business preparing for insolvency. It is essential to work with experts to negotiate and conclude the agreement as quickly and efficiently as possible. The term appeared in English-language newspapers at the end of the 18th century. It was used to describe the Protestant branch of Christianity as “a horse of harassment in power” in Ireland in 1785.  Early examples of its use in a political context appeared in 1796 in the London newspaper The Observer, in Connecticut Courant in the United States in 1808 and in 1822 at the Sydney Herald Morning in Australia.  Companies facing a financial crisis and preparing for insolvency can achieve an effective restructuring of their financial affairs by selling at least most of their company`s assets. A stalking-horse offer is a first bid on a debtor`s estate, such as bids made for the Weinstein Co. before a formal auction. In hunting, he refers to a horse or a figure of a horse behind which a hunter hides in the game of staloter. The stalking-horse bidder gets benefits for his efforts.
It can negotiate the terms of the purchase and choose the assets and liabilities it wishes to acquire. The most important thing is that the stalking-on-horse bidder can negotiate bid options that remove their competitors from the offers offered. In order to secure a stalking-horse offer, the debtor can offer his best offer protection before the auction, such as a break fee. These incentives increase the value of the bid for the bidder, which could lead to a better price offer before the auction begins. This higher bid is now the launch offer of the auction and can benefit the debtor and his estate. On July 27, 2009, the Wall Street Journal reported that the AB L.M. Ericsson phone had won a stalking-horse offer for the $1.13 billion acquisition of Nortel Networks Corp`s CDMA division.  Even though some bidders may avoid the first bid as a harassment horse. You might choose to wait for another one to make the move, just to participate in the auction after the base price has been set.
Valeant Pharmaceuticals International Inc. (NYSE: VRX) has made a stalking-horse offer on certain assets of insolvent Dendreon. The initial offer was $296 million in cash on January 29, 2015. However, due to other competitive offers, the price climbed to $400 million a week later. In American politics, George W. Romney believed that Nelson Rockefeller had used him as a harassment horse during the Republican Presidential primaries in 1968, promising his support, not providing them, and indicating his own entry into the election campaign.  On June 10, 2016, on June 10, 2016, Mr. Davis proposed a stalking-horse offer of less than $90 million,