What are the thoughts? I wish I had sold last week in the $170s!
JP Brulard sold 5,700 shares at $177. Of course he still has 10 of thousands more shares. But, He can't just dump them all for fear of insider trading.
16 replies (most recent on top)
We could all see this crisis coming, and that's why I sold all my RSUs. Lesson learned!
I sold my stock a couple of months ago for a reason;
If the deal doesn’t go through, VMware stock will be under $70. I didn’t want to take the risk.
I bet Michael Dell and SilverLake don’t get 50/50 but 100% AVGO stock. They are special people.
Do you really think that HT wants Michael Dell to have that large of % of his company. Not a chance.
Everyone will simply get 50/50. People won't get what they are electing, they will get 50/50.
To research this yourself, here's the merger document.
https://www.sec.gov/Archives/edgar/data/1124610/000114036122035833/ny20005454x1_defm14a.htm
Paragraph 2.
**Upon the terms and subject to the conditions of the merger agreement, at the effective time of the second merger, each share of Class A common stock, par value $0.01 per share, of VMware (referred to as VMware common stock) that you own immediately prior to the effective time of the second merger will be indirectly converted into the right to receive, at your election and subject to proration in accordance with the merger agreement as described below, (i) $142.50 per share in cash, without interest (referred to as the cash consideration) or (ii) 0.25200 shares of common stock, par value $0.001 per share, of Broadcom (referred to as the stock consideration). You may elect a different form of consideration for each share you own. You may elect to receive (i) solely the cash consideration, (ii) solely the stock consideration or (iii) if you own more than one share, a combination of the cash consideration for a selected number of shares and the stock consideration for the remaining number of shares. The stockholder election will be subject to the election of other VMware stockholders and a proration mechanism, such that the total number of shares of VMware common stock entitled to receive the cash consideration, and the total number of shares of VMware common stock entitled to receive the stock consideration, will, in each case, be equal to 50% of the aggregate number of shares of VMware common stock issued and outstanding immediately prior to the effective time of the second merger. Holders of VMware common stock that do not make an election will be treated as having elected to receive the cash consideration or the stock consideration in accordance with the proration methodology in the merger agreement. You will receive cash in lieu of any fractional shares of Broadcom common stock that you would otherwise be entitled to receive.**
I bet Michael Dell and SilverLake don’t get 50/50 but 100% AVGO stock. They are special people.
Everyone will simply get 50/50. People won't get what they are electing, they will get 50/50.
Wrong. Unelected shares default to all-cash valued at $142.50.
That is why the stock price is adjusting downwards, there's no longer any time to buy, settle, and make elections for.
This is/was anticipated and buying shares higher than $142.50 would be at a loss soon enough.
They will not settle before 23rd and hence buyers will not be able to make any elections
Everyone will simply get 50/50. People won't get what they are electing, they will get 50/50.
Better stop those Chinese from getting hold of the 8088 processor!!!
Here is where I am confused about .... I agree that stock value is around $180+ when deal closes if you have elected for all stock option .... but what will happen to all the stocks that were purchased yesterday and today? They will not settle before 23rd and hence buyers will not be able to make any elections. For folks who do not make elections, they will get $142.5 only because they default to least chosen option which is always going to be cash payment. So could it also be that crash of yesterday was partially due to people cashing out because we approached that clif when people will no longer be able to make elections? China was a factor obviously.
Also from now on why would stock go back to $180s even if the deal moves forward? It should stay near $142 because that is all what anyone would get from now on ... no one will be able to make elections anymore unless election date changes again ( I doubt because this time they filed 425 and 8K filings announcing the election date)
JP is a useless sales leader. Yet another one of Maurizio’s favourites who’s done extremely well out of doing nothing but have exec lunches. Say bla blah blah and add zero value to the company.
VMware stock at $150 will be a waste of your investment as it converts to $142.50 a few days from now
Incorrect. With the 0.252 shares of AVGO, the real value is about $180. That's why I bought yesterday.
The deal will close, the stock for AVGO will skyrocket, and VMware stock at $150 will be a waste of your investment as it converts to $142.50 a few days from now. You won't have time to elect AVGO, and so the stock is settling into that number nicely.
China means nothing to the future of VMware/Broadcom.
"That's a write-off." is a term that comes to mind.
China blocked the deal. VMW will go down to 120$.
Right now, I would rather buy shares than sell them.
Execs sell regularly anyway no shock there
The price will get closer to 142 as the deal approaches
50/50. It will either return to 177, or tank to 80. Depends on acquisition status. Right now, things are unknown. Be thankful you don't have a $50m pay day on the line. You might be languishing in poopy pants right now