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US: Stalking horse bidder emerges in auction for Hostess assets

By  |  January 24, 2013

Flowers Foods Inc has announced a purchase agreement to buy 20 of Hostess’s baking plants and most of its bread brands and, if chosen as the winning bidder, has said the company is aware the deal would be subject to approval from US authorities. According to reports, Flowers is a “stalking horse” bidder, meaning the company can file a preregistration notification before a winning bidder is even chosen; if Flowers is not chosen, the company would have to pay a breakup fee. In a report, antitrust expert Malcolm R. Pfunder explains that the stalking horse bidder has the advantage due to an early completion of a review.

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