Every employee that has VMW stock should have received an email from E-Trade. Close date is 5 business days after the deadline for the cash or stock election (which is September 7th).
This is the date that Broadcom expects “in good faith” that the acquisition closes. It would be two business days after the final CMA decision.
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@gbw+1oa4vHZn, thanks! That was really helpful. I wonder though what went wrong in the communication as the internal FAQ and the email contradict each other! Not good.
@nlj+1oa4vHZn, go to the Official Broadcom AMA Slack channel for a link to the FAQ.
@vmq+1oa4vHZn, which FAQ sent around today???
Yes of course, the dates can all change, that’s why it said „or such date as may be agreed between…“ But something’s going on. We’re in any case much closer to the close date than ever. BC is in a hurry. They are conducting 1:1s with a lot if ICs.
If you read the FAQ that was sent around today, you'll see it explicitly states that these dates are preliminary and subject to change. See Q10-Q12.
I did see Broadcom file an 8K for on Wednesday (8/16) showing they have $28Billion borrowed for the share buyout. That is just enough to give them the cash to pay $142.5 for 50% of the VMW stock. I think whatever you select as a payout option we’re getting the 50/50 split. The longer term downside of holding AVGO stock is the additional debt and stock circulating is going to put downward price pressure on any AVGO stock that we get.
A transaction closing date of September 11th would seem morbidly fitting.
RIP VMW :( for those that haven't left yet. God speed and good luck!
Anh Ominem, this language is pretty clear:
"The Election Deadline will be 5:00 p.m. Eastern Time on the date that is five (5) business days prior to Broadcom's good faith estimate of the anticipated closing date of the Transaction or such other date as may be mutually agreed to by VMware and Broadcom."
The Election Deadline is when the shareholders have to elect, and that’s September 7th.
According to E-trade September 7th is the broker's deadline to get the elections done, but the company agreed deadline is September 11th. They need a few days before the official election close to process the selections. So unless things change, that would put the expected deal close date on Monday 18th 5PM ET
what will happen to shares bought today? will the selection apply to shares bought today?
I would not be surprised at all if BC already has insider non public FTC info on what is coming through.
And if you don’t make an election? What is the default?
I’m fearful of shenanigans where they don’t give time to make an election, Dell gets 100% of it as Broadcom Stock, and we don’t get that upside.
Am I crazy ?
@cle+1oa4vHZn, read the clause, people have posted it here, and it’s in the FAQ doc as well.
It’s not in the press yet because it hasn’t been publicly announced yet, just in that email. Which is odd.
Bad communication!!
@wdp+1oa4vHZn, the Election Deadline is legally defined as September 7th, it’s a capitalized term. Not sure why there’s this other date.
@qth+1oa4vHZn, it is capitalized, hence a definition. They have time to announce it until 3 days before.
That being said, the 5 days maybe don’t apply because of the „or such other date that the parties may agree on“.
Sources say though that it is indeed September 15th. But that the parties will likely extend it.
September 15th makes perfect sense because of the CMA deadline of September 13th. By now, no one can interfere anymore in the UK. I guess the other regulatory bodies have waived their rights to object/sue.
So the parties will TRY to meet September 15th, and potentially extend.
@wdp+1oa4vHZn, the Election Deadline is September 7th. So add 5 business days to that.
It’s weird that they also stated an offer validity date of September 11th, but the Election Deadline is in any case the 7th.
If you make a choice now, you can still change your mind until the 7th.
Quick question on election - THere's two boxes for Cash and Stock. Do you just enter the number of stocks you want as cash or stock? Or, do you enter a %?
For those looking what option to take from the acquisition remember you have until Sept 7 as the deadline to choose. I will hold out till just before then as I am expecting a lot of volatility around VMW/AVGO stock prices. I agree with other posters that 100% AVGO would be the way to go. However as most if not all will take the stock, Broadcom does not have enough shares to make that issuance. Part of the merger agreement noted that any over subscription would be adjusted. My guess is no matter what choice the outcome will 50/50 cash and stock.
The election form lists these two dates:
Expires on September 11, 2023 05:00 PM ET
Reply By Date September 07, 2023 05:00 PM ET
The document says
"The Election Deadline will be 5:00 p.m. Eastern Time on the date that is five (5) business days prior to Broadcom's good faith estimate of the anticipated closing date of the Transaction or such other date as may be mutually agreed to by VMware and Broadcom."
Could either September 7 or September 11th be the equivalent of the "Election Deadline ?
If this post was true it would be in the press. 9/7 is proxy preference date for shares in hand
No where was 9/7 called Election Deadline
Quick question on election - THere's two boxes for Cash and Stock. Do you just enter the number of stocks you want as cash or stock? Or, do you enter a %?
Election deadline isn't necessarily the 7th.
The 7th is the date existing shareholders have to submit their preferences.
It clearly states in the FAQ that the election deadline will be made public within the time frames given, min 3 days before deadline date.
Quote from the doc: "The Election Deadline will be 5:00pm. Eastern Time on the date that is five (5) business days prior to Broadcom's good faith estimate of the anticipated closing date of the Transaction or such other date as may be mutually agreed to by VMware and Broadcom. VMware and Broadcom will promptly announce any extension(s) of the Election Deadline."
“VMware and Broadcom will publicly announce the anticipated deadline for submitting the Election Form (the "Election Deadline") at least three (3) business days prior to the Election Deadline. The Election Deadline will be 5:00 p.m. Eastern Time on the date that is five (5) business days prior to Broadcom's good faith estimate of the anticipated closing date of the Transaction or such other date as may be mutually agreed to by VMware and Broadcom. VMware and Broadcom will promptly announce any extension(s) of the Election Deadline.”
“ IMPORTANT DEADLINE: Your reply must be received no later than September 7, 2023 at 11:59 p.m. ET.”
Seems the deadline in the email is not the public deadline?
“Close date is 5 business days after the deadline”
I didn’t see that in the email. More made up cr-p?
You will only receive the email if you have stock ( not only unvested RSUs). The 5 days are in the FAQ doc on the site where you can make your choice.
I didn’t receive any email from Etrade.
Is it sent by wave ? Depending on the region. I do not want to miss the opportunity. Thks
Where did you get this "5 days after" information ?
Put all in AVGO stock. Maybe one day soon they will look to split shares if it climbs past 950$
Not taking into consideration anyone's special tax or other financial circumstances, the breakeven of $142.50 only happens with AVGO at $565.48/share. So, unless you think AVGO is going to drop below that price in next month, requesting stock appears to be the better option.
What happened to unvested RSU?
I chose 100% Broadcom stock
What happen to unvested rsu?
I meant ….
Did you elect 100% AVGO stock or 50/50 (AVGO/Cash)?
I took the stock, not the cash. Cash doesn’t make sense with VMW stock price above the $142,50. You can look up in the Slack channel how it will be calculated.
To take the cash option would be stupid because the VMW stock price is already way above it. I chose BC stock. There will be a pro rata adjustment, you can look it up in the Slack channel. We should end up at $180/former VMW stock.
So what to choose now? Put all in BC stocks or a mix of BC and the 142$ option? Any recommendations to maximize it?