BioAmber Inc fka BIOAQ

[BearcatJohnnie]

If they are using a stalking horse bid they will have one company start off the bidding on the lower estimate and give them special reduced fees to start the bidding because the first bid will usually get outbid with a lot of bidders. Then the buyout price will run from there.

Stalking horse bids. The CCAA regime is flexible enough to allow for ‘stalking horse bids’. This approach is well-known in the US, but is relatively new in Canada. In this process, the debtor company enters into an agreement with a ‘stalking horse’ bidder for the sale of particular assets or the entire distressed business. An auction process is then undertaken to obtain the best offer possible. The stalking horse bidder provides a price that underpins the auction process. The stalking horse bidder enters the process knowing it may be outbid and thus negotiates compensation for its transaction costs, usually in the form of a break fee that it will receive if it loses. The stalking horse bidder resembles the ‘white knight’ in a takeover situation.