The first batch…

So I’ve taken a quick look at some of the comment letters that the SEC began releasing yesterday and I have to say I’m pretty confused as to why corporate attorneys would whine so much and try to keep these from the public. I’ve skimmed through about 10 of them and so far, it’s mostly been a giant snooze fest. But, of course, it’s still early and hopefully, the letters will get better.

The most interesting one I came across was for Corio, which used to trade under the ticker CRIO before it was acquired by IBM for $182 million in January. In the comment letter, the SEC asks Corio to provide additional material on outside auditing firm KPMG’s decision to resign and questions the company for failing to disclose this in the company’s Q for the first quarter of 2004 or the 2003 10-K. Could the average investor make the leap from that August comment letter to IBM’s acquisition several months later? Probably not. Then again, it might explain why the deal only took seven weeks to complete.