Beware Monday Morning Merger Talk

TPG and other deep-pocketed firms, including Leonard Green & Partners and Kohlberg Kravis Roberts & Co., have all reviewed a takeover of Bally in the last two years (old news, reported to support possible non-news. Plus, all firms like Leonard Green and KKR "review" nearly all companies. A review -- like companies "talking" about a merger -- means little to nothing, especially if it happened two years ago. But on a Monday...)

By the way, no one is quoted saying that a private equity firm would have to have their head examined to buy Bally at any price. Responsible analysts and bankers, remember, are watching the kids. And I haven't the faintest idea if this is true in any particular case, but the editors and writers I beat up on were themselves very concerned about Monday morning "exclusives" being given as part of a quid pro quo for little or no dissenting opinion.

Everybody's Doing It

Low-lighting the New York Post on this Monday morning nonsense is no specific knock on Rupert Murdoch, by the way. The Wall Street Journal is famous for Monday morning merger talk stories. Look at this Cadence Design Systems (CDNS Quote) story from this morning's New York Times.

"Specialized Software Maker Is Said to Be in Buyout Talks."

Notice the passive voice..."is said to." That's always a tip-off that those looking to peddle the thing are behind the talk. Notice, too, how the lede and next thought or two -- complete with a tactically placed back-off of the whole premise -- are almost identical to the Post article:

"Cadence Design Systems, one of the largest makers of the software used to design computer chips, is in talks with at least two buyout firms about a possible sale of the company, two people close to the matter said yesterday.

"The company has held talks with Kohlberg Kravis Roberts and the Blackstone Group, and other suitors may emerge, those people said. But they warned that a deal may not happen because of the complicated risks in the company's business. Other private equity firms took a look at Cadence but passed."

Remarkable. Now you know why I don't like Mondays.