10BagR - Agree on both sides of the argument. I have also heard a justification that it is much easier so sell a private company than a public company. Take the case of RVX for example. Having a company with unbelievable potential value being priced by an auction market that has the potential of being manipulated a little. How does the board of a BP justify to their shareholders why they are willing to pay 20, 30, 40 times the last price that the shares traded at on an open market? With a private company however it is a much easier justification. Lay out all the veritables and do the mathematical exercise and come up with a price that is suitable for both parties and sign a deal. The acquiring company may also like the fact that they were able to get something that others didn't because their DD process was more diligent than their competitors. With a private company there is much less burden for justification, so I've been told.

The investment bankers will use whatever tools at their disposal to get the best price they can for the assets they have been tasked with selling. Having the whole world knowing what you have to sell because of disclosure rules  may not give you the advantage in a negotiating environment.

You're right 10, there are two sides to this argument.

tada