Thanks Darmesh. Its pretty much the approach we took, I guess the only thing is that we should have walked away at your point 4. We discussed it, what stopped us in the end was that even though the deal had now changed, it was still a deal we would have happily done.

In retrospect it was a bigger deal than we made of it and we really should have walked away. Rather than focussing on the terms we should have focused on the signals this was sending - something fishy was going on and internally these guys weren't communicating.