Mesa Offshore Trust (fka MOSH)

[shisya]

I dont think the "For" argument is really strong.

None is going to pay more than what the properties are worth, they may be willing to pay upto what the property is worth but not more.

I think if all parties do their DD, they all will have an understanding of what the property is worth (I believe they will all have about the same number in their heads) and then they will come to the conclusion of how much they are willing to pay for it.

By having the preffered bidder clause, even if a party pays good amount for what the property is worth, then the preferred bidder could come in and trump it by agreeing to match that. So now, instead of making a profit of X% they would be making a bit less than that because they paid more for the property by matching the price, but that doesnt change the fact that they still stand to make profit on the property.