RE:Is it legal?Not an attorney, but it seems to me that a public Company has a duty to disclose all MATERIAL facts once known (with a high degree of certainty).
Three questions come to mind:
- What is considered material? Presumbly material information is any information that may affect a reasonable person's actions (Buy, Sell, Hold) on any given stock.
- If a Company is in negotiations with another Company but has not quite "papered" a material deal, does the fact that such deal is being discussed warrant disclosure? And at what point? Presuamably a Company would not be required to disclose any on-going discusions that have not come to fruititon. But it may be fair to ask, when is a deal consumated ? When it is highly likely, or when a contract is finally & formally signed?
- Does one party's need/request for privacy, over-rule the requirement for material disclosure?
MM