The biggest news this morning in corporate land is certainly the acquisition of National Semi by Texas Instruments. Which is why we were not surprised to see that Goldman was moving to "Not Rated" rating on both companies. What did surprise us, however, is that up until yesterday afternoon, Goldman had a Sell Rating on National Semi, and, define irony, Buy on Texas Instruments.
From the Americas morning summary:
And making the case even stronger, is Goldman's Sell conviction on the company since March 2008.
But the kicker undoubtedly is the following disclosure in the closing coverage report:
Goldman Sachs is acting as financial advisor to National Semiconductor Corporation in an announced strategic transaction.
Luckily, Goldman's sellside, and its clients, was behind a very impenetrable Chinese wall on this one. Our only question is whether Goldman's prop traders, who by the way are alive, kicking, but now known as "client-facing", were also kept just as "in the dark", and whether they were buying while Goldman's clients were selling. In the meantime we will keep our eye on just how "perfect" Goldman's most recent trading quarter will be, even despite the total lack of trading volume in Q1.