Cool fairytale but highly illegal. Key words 4 days. Not years .
Generally, when a U.S. public company enters into a “material definitive agreement”
(which is somewhat of an opaque concept lacking any bright-line rules, but a significant
acquisition agreement would likely qualify), the U.S. public company is required to disclose, within
four days after entry into such agreement, certain information concerning the agreement and
related transaction. U.S. public companies are restricted, however, by “Regulation FD”, which
generally requires that when a public company discloses material nonpublic information to certain
individuals or entities the company must publicly disclose such information.
