I wonder if China presents a convenient mechanism to delay a few days to save money. A large set of RSUs are maturing tomorrow (likely more than usual given the retention grants offered to some employees). As an unvested RSU, it must convert directly to AVGO. Once vested, it will convert according to proration rules (96% of which have selected the stock option).
Just a lame idea among the many HT is evil ideas...
"What will likely happen? If the deal collapses (50/50 chance), then VMW shares will become like Monopoly board game money."
It's a value destruction death wish. Much value has been erased from the VMW brand.
The evil idea about RSUs maturing is a mute point.
MOOT, galdangit! If you want to use $20 words, make sure you actually know them.
“No, we will not get .252, we will get equivalent number of shares that total the same value at point of vestiture.
All unvested shares will not automatically convert to .252, they will be converted to the same cash value on acquisition. For example, if you have 100 shares not yet vested, when the acquisition happens, they will be worth 100*142.50 = 14,250. If Broadcom that day is 850 per share for example, we would get 14,250 / 850 = 16.8 Broadcome shares, not 25.2 shares.
Don’t think you’re all about to make a load of money on unvested shares converting to .252, that’s only for invested shares. All invested will convert on cash value“
I’m wrong! Ignore the comment above! Actually it is somewhere in the middle and is answered on the internal slack channel
The aquisition was delayed 3 times. The evil idea about RSUs maturing is a mute point. It's simple and it starts with a C and ends with Hina
“If we closed first, they would convert to AVGO at rate of .252 neting the holder a ~$70 per share gain (based on current AVGO price). If they vest a VMW, at best the holder gets a 50/50 split, but likely a cash only option.”
No, we will not get .252, we will get equivalent number of shares that total the same value at point of vestiture.
All unvested shares will not automatically convert to .252, they will be converted to the same cash value on acquisition. For example, if you have 100 shares not yet vested, when the acquisition happens, they will be worth 100*142.50 = 14,250. If Broadcom that day is 850 per share for example, we would get 14,250 / 850 = 16.8 Broadcome shares, not 25.2 shares.
Don’t think you’re all about to make a load of money on unvested shares converting to .252, that’s only for invested shares. All invested will convert on cash value
It's not closing by tomorrow, so we get plain VMW shares. Worth $142.50 if deal closes, or market price if not. Or, get lucky and election deadline re-opens, but I doubt that.
"If they vest a VMW, at best the holder gets a 50/50 split, but likely a cash only option."
Not true. It's been announced the split is 52.1/47.9 in favour of VMW shares being converted to AVGO shares based on proration.
What will likely happen? If the deal collapses (50/50 chance), then VMW shares will become like Monopoly board game money.
Seriously, RSU vesting is the least of our concerns, if the share price declines rapidly.
What will likely happen, as the pro-data has already been worked out, is all newly vested shares will vest as VMW shares, as we’re not AVGO yet, and will become cash at 142.50 if held until acquisition, or if sold whatever the share value is on the date the holder chooses to sell
Yep, that was my (OP's) point. If we closed first, they would convert to AVGO at rate of .252 neting the holder a ~$70 per share gain (based on current AVGO price). If they vest a VMW, at best the holder gets a 50/50 split, but likely a cash only option.
What will likely happen, as the pro-data has already been worked out, is all newly vested shares will vest as VMW shares, as we’re not AVGO yet, and will become cash at 142.50 if held until acquisition, or if sold whatever the share value is on the date the holder chooses to sell
This is what will happen
Betsy said even if it goes through everyone stays on vmware payroll on the first because so many vesting on this date
What will likely happen, as the pro-data has already been worked out, is all newly vested shares will vest as VMW shares, as we’re not AVGO yet, and will become cash at 142.50 if held until acquisition, or if sold whatever the share value is on the date the holder chooses to sell
"Just a lame idea among the many HT is evil ideas..."
The only thing that appears to be 'lame' is this ongoing fiasco.
AVGO press release and corp communications department must be run with interns. Truly, I've never seen this type of unprofessional public disclosure from any prior employer. The only reason that rumors continue to circulate is because Hock is a micromanagement and control freak with high school communication skills.
Nope, xi can't stand hock or the USA and are just winding down the clock. China had a year and a half to approve the deal.
Hmmm, okay I believe. Clever scheme Hock, so clever.