GREY:NEVDQ - Post by User
Comment by
rickwayne1982on Aug 14, 2024 7:28am
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Post# 36178013
RE:RE:Stalking horse bid makes sense now...
RE:RE:Stalking horse bid makes sense now...I understand your point and why some people would think that... people need to look at this as a tactical approach taken by Moelis because Pala has the upper hand here. They have assets the big players want. If they chose a major player to set a high stalking horse bid, firstly, other majors would know their competition is bidding, secondly, they know what range that major is pricing the assets at. Therefore they would simply outbid them...
It make sense for Nevada Copper to choose a Stalking horse bidder that seems like they won't win the bid too (with such a tiny offer) or have the budget to maintain Pumpkin Hollow. Maybe they have a secret Billionaire backer too. But they only set the floor price... and the person and price this was chosen at was tactical.
Negotiation 101, never show your cards too early.