depends on their reputation and mode of operation before. If they always stuck to term sheets and now they are walking away it's news. Legal or not is irrelevan

depends on their reputation and mode of operation before. If they always stuck to term sheets and now they are walking away it's news. Legal or not is irrelevant here. A lot of times CEOs shake hands and lawyers work the details...reneging even if it's legal (depending on how /where) it's damaging to your reputation.