Leaking to the media, especially the Wall Street Journal, about possible deals is a grand tradition on Wall Street. Many a reporter has made a reputation via deal talk. For bankers, the goal is to control the story spin, which makes sense in sensitive situations. Some may want to prod another bidder. At times, a leak can be a problem, especially if the stocks go haywire. The most recent twist on this comes from research conducted by London's Cass Business School and reported by IDD. It found that just under 50 percent of leaked deals actually close, compared with 72 percent of non-leaked deals. Also, the premium paid by the winner in a leaked deal is 14 percent lower than in non-leaked deals. To leak, or not to leak boils down to specific situations, it seems. On balance, staying mum may be a better bet.

For more:
- here's the IDD article (For FierceFinance readers)

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