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Locating the source of the leak in M&A

Leaked information on business deals has long been an issue for regulators, but finding the guilty parties is far from easy

It has become almost commonplace to see information on the biggest deals leaked ahead of an official announcement. The topic has been put firmly back on the agenda in recent weeks after UK retailers Dixons and Carphone Warehouse were forced to confirm speculation about a possible merger.

According to a stock market filing, news of the talks broke so early that the two electronic companies had not yet decided which would be buying the other. The boards now have until March 24 either to announce a firm intention to make an offer, or pull out. It was not a rare incident.

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