That's pretty obtuse. You should certainly take their position into consideration, and even more certainly should be talking to a competent attorney with M&A experience about this.
In this post though we are merely speculating as to the reason for the meeting and looking for advice from the HN community. If the company had suggested to us that we should keep the fact that we are having a meeting with them confidential, we certainly would have. It is definitely the right thing to do if people ask.