IB Media Leaks - What Drives Them?
I often see news articles that look a lot like this recent one from Reuters:
*Angelo Gordon & Co, which acquired Benihana for $296 million in 2012, is working with investment bank Piper Sandler Companies (PIPR.N), on a sale process, the four sources said.*
Just curious how stuff like this gets out? How did this journalist find "four sources" who would leak this confidential info? What motivated the "four sources" to give out this info?
Was Angelo Gordon trying to telegraph as broadly as possible that the company is for sale, or was Piper Sandler trying to cash in on some clout? Maybe a rando just got their hands on the CIM?
Again, this is obviously one of many examples of a leak - not specific to AG and PSC. Just curious about what everyone's experiences with leaks have looked like.
Which party in a typical sale process has an incentive to leak it to the media? There’s your answer
Bankers always want the word to be spread. Sellers are a clear second, buyers obviously don't.
In my experience it has always been the banker, despite the clients interest in keeping process quite, it can help the banker to get deals out to the market. The other time I have seen it is when there are co-advisors and one bank wants to get ahead of the other one.
Stir up investor interest, looks good for the banks, and if its going to be a auction sponsors will look a little more deeply when that Piper MD emails them seeing if they're interested for a chat about an addition to their PE portfolio
On the other hand, if its a leak in a selective process it'll be a problem, funds might break their Confidentiality agreement anonymously if they were given the short end of the stick. Is that legal? Naw. But does it happen? Most definitely.
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