Broadcom offered $141 per share for VMware, yet VMware is only trading at $116. I would think this far into the acquisition talks the price would be only 2-5% below the offered price - not 22% below. Any good rumors that would be driving the strike price that far below the acquisition target price?
6 replies (most recent on top)
A stockholder is a stockholder. Doesn't matter the source of the shares. If you have vested RSU's those are now shares you own, just like any other shareholder.
Is the BC offer only applicable to those employees who will be offered a role in BC? If one is likely to be cut on Day #1, should one sell VMW RSUs now at $119 or will the BC offer be applicable to all VMW employees whether they stay or go?
The price is only half $142.50 cash. The other half is Broadcom stock (and obviously price of Broadcom stock has gone down like any other company in past few weeks) so you have to take the average.
Keep and eye on the Broadcom price. 50% of the offer is based on a share swap. As the price of BC drops so will the offer value. Last time I did some math the BC stock valuation of VMware was around $126 a share. So if you have VMW stock it’s currently 50% at 141.5 and the rest at whatever the stock swap value was in the offer on closing. If BC stock drops big time VMW shares will be worth less.
the market is tanking, and the tech sector is getting it also. The price is nothing more than a reflection of buyers sentiment... If you are pulling out of the market (which in most cases is silly) VMware will be down also... The closer we get to close the closer the price will be.
Yea, a go shop period or the looming recession. Both could ki-l a deal.