Thread regarding VMware layoffs

Does $1.5B termination fee apply if the deal does not get Chinese approval by Nov 26th?

Curious if anyone knows more definitively whether the $1.5B termination fee applies if the Nov 26th deadline comes and goes without Chinese approval, both companies don't announce by that date that they will proceed with the merger except in China (which many on Wall Street say is not very likely), and the current contract expires? I'm guessing the answer is No, but curious if anyone has better insights into what normally happens/has happened in the past in such similar circumstances in terms of the termination fee.

At this point, if there is no termination fee if the contract expires, I would think that this is what BC would prefer. Having said that, my expectation is also that if that happens, then there will likely be some class action lawsuits files against them, something which they may have anticipated, already done that math on ,and figured would still cost them less than paying a $1.5B if they terminated the deal before the November 26th deadline. Seeing as nobody stepped up with a counter offer to buy VMware during the initial "Go-Shop" period, I'm also guessing that potential interested acquiring parties believed that BC was over paying for VMware and so were not interested, but may now be salivating at the possibility that this may not happen and so waiting in the wings to make a lower offer if the deal falls through, thinking that Michael Dell, the VMware executive team and some of the other large investors will be desperate to sell at any price after having missed out on their big payday after having come so close to closing this and laughing all the way to the bank.

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| 1541 views | | 7 replies (last November 20, 2023) | Reply
Post ID: @OP+1pGadfKQ

7 replies (most recent on top)

Good money for yes men and women.

|Name| | |Fees Earned(1) ($)| | |RSU Awards(2)(3) ($)| | |Total(4) ($)| | |
|Anthony Bates| | |128,668| | |256,511| | |385,178| | |
|Marianne Brown| | |198,889| | |256,511| | |455,400| | |
|Michael Brown| | |236,444| | |256,511| | |492,955| | |
|Donald Carty(5)| | |86,223| | |256,511| | |342,733| | |
|Michael Dell(6)| | |—| | |—| | |—| | |
|Kenneth Denman| | |116,223| | |256,511| | |372,733| | |
|Egon Durban(6)| | |—| | |—| | |—| | |
|Karen Dykstra| | |244,446| | |256,511| | |500,957| | |
|Patrick Gelsinger(7)| | |—| | |—| | |—| | |
|Paul Sagan| | |311,334| | |256,511| | |567,845| | |

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Post ID: @zlk+1pGadfKQ

The board did what was right for the majority of shareholders, all two of them.

How can I get that job of being paid a fortune to be a corporate yes man?

https://ir.vmware.com/websites/vmware/English/7200/board-of-directors.html

Sc--w those people.

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Post ID: @puf+1pGadfKQ

Once this fiasco is over, how does the VMW board survive shareholder law suits?

'Inept and unsophisticated' doesn't describe their complete and total incompetence.

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Post ID: @zra+1pGadfKQ

"Now I know better than to work for people like them, lesson learned."

Exactly my thought. I won't get fooled again... My time at VMware was a total waste.

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Post ID: @ocp+1pGadfKQ

Dell and SilverLake don’t need to hide their bad behavior, it brazen and publicly shown time and then again. They have a long trail of law suites for their crimes with fines of up to 1 billion being paid out.

F those guys, and F VMware. Now I know better than to work for people like them, lesson learned.

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Post ID: @tla+1pGadfKQ

Assuming this deal fails through, and odds are heavily weighted that it will imho, the other shoe to drop will be MD and SL ability to sell early and at the highest valuation, thus tanking the stock whilst leaving the minority holders locked up until the last moment. This scenario, I believe, constitutes damages to minority holders and establishes value of pending law suits. These guys are slick, extremely sloppy at times, so it seems. If they are monitoring these threads, know that the world has you under a microscope right now. Do the right thing(s)

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Post ID: @qqf+1pGadfKQ

If a contract expires in the woods and the two parties do not see it, does it really expire?

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Post ID: @sby+1pGadfKQ

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