Inside the numbers: Neigh sayers
by Neil Malcolm | Published August 25, 2011 at 11:01 AM ET
Rival bidders aren't horsing around. Indeed, competing parties for insolvent companies' assets have launched a "canter" offensive against stalking-horse bidders. As a result, the success rate of lead bidders in bankruptcy-related merger and acquisition deals has been reined in.
The 63.7% winning percentage of stalking-horse bidders in transactions announced so far this year represents a 19% decline vis-à-vis the corresponding period in 2010. In fact, 2011 is a loss leader for stalking-horse bidders, as the failure rate of 36.3% is the highest for at least the past five years. -- Neil Malcolm
| GALLOP POLL | ||||
| The winning percentage of stalking-horse bidders has declined. | ||||
| Jan. 1-Aug. 18 of each year | ||||
| STALKING-HORSE DEALS | ||||
Year |
No. of total bids |
No. of winning bids |
No. of losing bids |
Winning % |
2007 |
79 |
62 |
17 |
78.5% |
2008 |
152 |
121 |
31 |
79.6 |
2009 |
132 |
109 |
23 |
82.6 |
2010 |
120 |
94 |
26 |
78.3 |
2011 |
91 |
58 |
33 |
63.7 |
Source: The Deal Pipelilne |
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