The Backdating-M&A Connection?

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The boys at Deal Journal have noted an interesting trend Re: company backdates, company gets acquired.

SafeNet’s deal to be acquired by Vector Capital for $634 million follows disclosures of Securities and Exchange Commission and Department of Justice investigations into its stock-option grants, and the subsequent resignation of its CEO. By our count, that swells the ranks of those that have disclosed backdating issues and later gone on to find suitors to at least 10, out of a running WSJ.com tally of 120 companies that have been sucked into the scandal.

DJ also goes on to guess the next backdaters likely to be picked up: Barnes and Noble, Sepracor, Sonus Networks, Bed Bath & Beyond, and L-3 Communications Holdings. Trend or coincidence? We're not sure. But it's like a good friend of ours always says: [Stewie looks into the mirror after applying some lipstick to his face] Well, I say, look at you there. You're a filthy girl, aren't you? Yes. You're looking for a bad time. That's what you're after. You're a dirty flirt. You want it bad. You don't care where you get it becasue you have no self-respect and that gets you off, doesn't it?
The Backdaters’ Ball: 5 Possible Acquisition Targets [WSJ]

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