Beware Monday Morning Merger Talk

You want me to tell you why I don't like Mondays? Monday morning merger talk. It's the oldest trick in the book, one on the lips as a matter of concern and controversy among the top business media editors and writers The Business Press Maven berated a few weeks ago.

The funny thing is that this could have been a topic of concern decades ago, when I was busy chewing plastic toys. Nothing has changed. Nothing will. So, as a savvy investor, you must be aware of how things work and why we should all hate Mondays. Or, at least, beware of them.

Leaving the Kids in the Surf

An investment banker or corporate official who wants to put a company up for sale often leaves the kids fending for themselves in the undertow on Sunday afternoon. That's because Sunday afternoon is the best time to contact reporters looking to fill Monday morning space, which is not always easy.

Even better, no one is around over the weekend -- which means that a leaked story about a company being put up for sale can't be shot down by analysts and traders who say that such a deal is unlikely.

To put a company in play, a banker or CEO will leave the kids in the surf. To be quoted, especially in a negative vein, an analyst generally won't. On any given Monday you'll see a lot of merger talk, with very few sources and even less doubt haunting the articles.