Gotta get the China approval within next 10 hours, otherwise deal won't close on monday.
What's the plan B?
The previous failed deals like the Qualcomm one and the Intel/Tower case, none of those moved forward to this stage. In neither of those cases, offer letters were sent or stock was listed for suspension/delist. Why didn't BC announce the delay already? Why wait till the very last moment?
You are making a big assumption. You don't know it is required and we are already past the 3 business days deadline if that's what you are referring to in the agreement. They've already broken the agreement with our offers. The agreement also says the 3 business days can be changed by the parties. You also don't know for sure China is a requirement. All assumptions. All signs pointing still to 10/30.
We have 10 more hours to get China approval to close deal on oct 30
Dum dum China’s Monday start before US just saying your 10 hrs logic is DOA (if I need to spell it for you Dead On Arrival).
Now not saying China will approve in the last minutes, saying you logic is dud.
Rather speculate wait for 3 more days
I was reading a post by an M&A guy (not specifically about BC/VMW) and he made the point that China has eliminated the work-around of just keeping Chinese subsidiaries separate. Apparently China can fine companies 10% of their GLOBAL profits of they fail to get approval.
That doesn’t mean the deal can’t go through. It just means it’s unlikely to go through if China objects. I think Hoc has to have a plan. Too much “face” would be lost if this falls through after his public rant about it. I suspect he has inside info about the approval… whether immediate or delayed.
China’s State Administration for Market Regulation under Chinese law prohibits closing any part of the deal prior to approval. SAMR will not allow the parties to hold separate the China portion of a deal while closing elsewhere or “park” China assets with a financial buyer with no China revenues in order to circumvent the approval process. BC has until Nov 26 to get approval. Oct 30 close was Broadcom’s aspiration. VMW all hands call was canceled Thursday due to a “scheduling conflict “. Logic says the deal gets delayed until the China approval gets sorted.
Somebody needs to add lipstick to this equation
@cel+1phMVTEq
Ok then the goose is VMware and you are Broadcom. Flying pig is China.
For those lovlies posting the deal will go through, just to let you know, I have the goose that lays the golden eggs in my basement and she is doing very well. I let her out for walks and she is well looked after. I promise you that I don't let the flying pigs near her either OK.
They have an outside date of Nov 26. Both companies are locked in until then. If the deal isn't done by then, VMware can walk, or they can keep trying to pursue a deal with Broadcom.
They had a go shop period. There is no other bidder. Speaking strictly in terms of shareholder value, it looks like Broadcom is the only offer.
Also, I'm not sure why Broadcom wouldn't just close in the countries that it has won approval, then just continue to work with China. I don't know anything about this deal beyond what is in the public sphere, and only speculating.