citi m&a + citi research

Citi M&A last line;

http://blogs.wsj.com/dealjournalaustralia/2012/10/04/cathay-fortune-lobs-848-million-takeover-offer-for-discovery-metals/

Citi Research;

http://www.afr.com/p/markets/market_wrap/discovery_metals_dml_xRQ9kdUIZ00i2ohV4Y20KJ

Sort of comical to assume Chinese Walls really work and something fishy is going on; either they're not advising Cathay anymore, or the sell report came out in response to the end of the takeover (out of bitterness?) or calculated move to force down SP (surely illegal?).

They can't have found anything 'bad' on DML through due diligence given the bid was hostile and CFC didn't have access to the books...

I'm struggling to reconcile the two above; is Citi still advising Cathay? How is it ethical to then issue a 'sell' rating?