Will our previously purchased ESPP shares be guaranteed the $142 per share at some stage as per the broadcom buyout agreement or is that only guaranteed to the primary shareholders such as Dell and Silverlake. Wondering should I now cash in at $129. Apologies if the answer is obvious however I've very little experience on this matter.
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Don’t forget that merger is a 50% cash and 50% stock, so if AVGO stock is lower than $565.47 on the date of closing, all shareholders will get less than $142.50.
They are selling per elections they selected previously. There is something many executives put in place to execute trades automatically, so if they are in possession of inside information, it doesn’t impact them. Usually at the beginning of the year, executives will say “executive X number of shares on X date”. That is most likely what is going on here.
You would have to wonder why VMware execs are selling large quantities of shares right now? Leaving big quantities of money on the table?
Information on those sales are publicly available.
Example
https://www.benzinga.com/sec/insider-trades/vmw/pierre-jean-brulard
Thank you for that info. One further question if you don't mind in relation to "All shares (including ESPP) will be offered $142.50 when the deal closes" When you say offered does someone reach out to you at that time or any idea on the process there ?
I was about to ask the same question also will they vest quicker?
All shares (including ESPP) will be offered $142.50 when the deal closes (no preference to shareholders like Dell etc).
I am not a financial advisor, but in my opinion selling now would be a bad idea - assuming it goes through, you'd be missing out on $10+ per share. The only risk is that the deal is ki---d off for any reason (regulatory oversight etc), in which case that $142.50 won't be offered.