Bed Bath & Beyond Stock On The Rise As Overstock Emerges With Stalking-Horse Bid

Bed Bath & Beyond Inc BBBYQ shares are trading higher Thursday following reports that Overstock.com Inc OSTK emerged as a stalking-horse bidder. 

The Union, New Jersey-based retailer, which filed for bankruptcy in April, is currently trading on the OTC Markets under the ticker ‘BBBYQ.’

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Shares of Bed Bath & Beyond traded up about 7% Thursday, from $0.18 at the open, to a high of $.20 on the day. 

Overstock, which has been trading up slightly, will reportedly spend more than $20 million for all of Bed Bath & Beyond’s assets, including intellectual property and data.

What Is A Stalking Horse Bid? A stalking horse bid is when a company makes the initial bid on a bankrupt company’s remaining assets.

This sets a low-end bar for the purchase, meaning other bidders cannot come in and bid for Bed Bath & Beyond’s assets for anything lower than what Overstock has already offered to pay.

Other players could outbid Overstock for Bed Bath & Beyond’s remaining assets.

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