Virtual Data Room Blog

Leak Leak, calls with Press in a Virtual Data Room?

Sep 27, 2010 2:48:16 AM / by Francisco Lorca posted in M&A News, IPO, FSA

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Very interesting articles in the WSJ Deal Blog, and Reuters about the  FSA´s drive to stop deal leaks caused by reporters in transaction.

In a recently published Market Watch report (read full report here) the FSA published its findings after 3 years of research on market leaks with recommendations to deal with communications with the media during a transaction.  Among other things, they include recording all calls and documenting any email exchanges with the media.

Our Data Room can currently capture all the written communication between parties in a transaction in our Q&A module. In a very recent large transaction that just closed using our virtual data room, our client posted recorded conference calls and recorded audio and video management presentations.

It would not be a big surprise if in the near future all communication with outsiders (including the press) is kept in a VDR.

Very interesting parallel with the recently implement SEC´s Rule 17g-5 regarding securitization which among other things requires all communications between issuers of the securitized instruments and credit agencies to be recorded and kept in a password protected site accessible to other agencies.
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