The investment bankers that are negotiating this deal must realize that their strategy of systematic leaks to Reuters are at best highly unethical and at worst constitute potential illegal disclosure of material nonpublic information and also stock price manipulation.
GDI is clearly in play - and so the board members of GDI have a legal responsibility to act as efficient auctioneers and get the best deal for GDI shareholders.
I would hope that the parties that are doing the negotiation realize these facts.
As these leaks may be getting in the way of the board's legal responsibilities, it might would be best if these leaks were stopped. The investment bankers should shut up and do their job otherwise the investment bankers and the board might wind up in jail and/or exposed to litigation.
This negotiation process leaks like a sieve. I have never seen anything like it.
I suggest that you put a lid on these leaks and get this deal done in a way that maximizes value to GDI shareholders.
Just a thought.
In disclosure, I am long GDI and am not affiliated with ValueAct - I just use that as a username because of my respect for this group.
Putting the leaks to the side. What I don't understand, GDI were in talks with four private-equity firms. Then GDI decided to cancel those talks without any break up clause deposit from SPX.
GDI made it easy for SPX to walk away from deal. GDI, money talks, you know the rest. Next deal, get a break up clause before dismissing the other offers.
Mid to upper 70's deal is just around the corner. In the mean time, the insider trading continues and the SEC sits on their rotating thumbs.
What do you think they were negotiating the last week. There would have been a break up fee if they could have done the financing but 1st you have to have financing of the deal. I suspect that GDI doesn't want to go private but may be forced to do that unless there is another stock exchange company steps up. Maybe FLS could be looking to buy them. This will probably go back up to the 70 level and rest there until an announcement next month.