Let’s say the deal doesn’t happen and the share price drops to something like 80. All the shares are locked until whenever and people are prevented from selling to avoid a potential loss. When do shareholders get the choice to sell again?
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They might not need shareholder approval to extend the date, but they're going to get their hind ends handed to them in a law suit if they try to keep the stock locked up indefinitely.
More importantly though, what's the upside to extending the deal. If China refuses to approve it or to comment on when they might, why would anyone think that approval is likely to come. The ChiComs could sit on this until 2025... how long exactly do you think Hock and his merry band of bankers can wait? I can almost guarantee that the banks behind this are salivating at the thought of renegotiating the interest rate (which is now double what it was when the deal was announced). How will the deal make sense then? And again, if China just silently refuses to approve, who's to say how long they might make BC wait. The twelfth of Never wouldn't be out of the question.
I don’t think they need shareholder approval to extend the outside date. This is covered in the merger agreement.
My guess is the deal will get extended and the shares will get released fairly soon.
They can not extend the deal without having to get approval from all parties, including all shareholders and the banks financing it. This will take time. The deal will be terminated on the evening of 11/26 and the shares will be released on 11/27.
My guess is the deal will get extended and the shares will get released fairly soon. Cannot hold them forever like this. If they ultimately get the deal ready to close they will have to re-run the shareholder election process.
Why not then buy puts a couple weeks out? I’m debating on this right now. I’m hedging with my RSUs, but am I inclined to short this pig a couple weeks out given what we know and surmise
I'm waiting patiently for when they announce the deal will not close and the share price tank, so I can buy the dip and sell when there it goes up. Buy and hold will be the strategy.
Class action for sure. Just last week he acted again in Barcelona like he’s the owner of Vmware already.
I wouldn't hold my breath. Too many lies for nothing?
If the deal fails then shares will be released for trading quickly. The stock will drop but that is not a reflection of VMware’s value.
Hock rushes to the closest commode, trips over and follows through.
Class action lawsuits against Broadcom and Hock Tan, thats what.
Unprecedented. No case law. Will need be decided in a court I guess.