The sealed-bid process for selling the minority interest in reigning Horse of the Year Curlin failed to produce an acceptable bid, but private negotiations will continue for the 20% ownership held by Midnight Cry Stable.
Sylvius H. von Saucken, a court-appointed receiver for the parent company of Midnight Cry Stable, Tandy LLC, declined to elaborate on what kind of bids were made for the minority interest, other than to say there were more than one.
“If you look at the point of the process, it was primarily established to find out what the value of the market was, to test the market, and to protect the value of the horse,” said Von Saucken. “We identified there was a market for Curlin, but also recognized that the market is depressed.”
Von Saucken said interest in a private sale of the minority interest was expressed during the sealed-bid process, which was marketed by Keeneland. Von Saucken said the receiver would pursue negotiations for a private sale of the interest, but could not elaborate on a timeline. He added that bids came in after Curlin’s disappointing fourth-place finish as odds-on favorite in the Oct. 25 Breeders’ Cup Classic (gr. I) at Santa Anita Park.
Kentucky state judge Roger Crittenden in September had approved the sealed-bid process requested by the receiver, which chose that avenue over attempts to sell via public auction or a private deal. Von Saucken said Crittenden has been informed of the receiver’s decision, which was made with the help of unidentified experts in the industry.
"The question was did we have an acceptable bid to present to the court? And the answer was no," von Saucken said.
The sealed-bid process from the beginning was intended to help the receiver establish a “maximized value” for the 20% interest, the receiver argued, but could have also resulted in the ultimate sale of the minority ownership if certain criteria were met.
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