Broadcom’s $61 billion (nearly 4.8 lakh crore) deal for VMware will go ahead after a rival bidder failed to show up to tear down the deal for the cloud computing company during the so-called period. is “go shopping,” according to people familiar with the matter.
VMware. not made public. VMware has until 11:59 p.m. PT Tuesday (12:29 a.m. IST Wednesday) to solicit other bids, according to a trading announcement in May.
Representing VMware and Broadcom could not be reached immediately for comment.
The expiration of the go-shop should help Broadcom overcome at least one obstacle to its biggest-ever takeover by a semiconductor maker. This provision helped Broadcom reach a merger agreement with the company, a pioneer in Silicon Valley that provides virtualization software.
To move quickly in the takeover talks, VMware has agreed to forgo talking to other potential contractors as long as there is an outlet for business in the deal, Bloomberg News report last month. Go shops rarely have big deals like this.
Broadcom’s offer is supported by key VMware shareholders Michael Dell and Silver Lake.
Merger experts surveyed by Bloomberg News in May said there was a low chance a higher bid would emerge and expected the deal to take about 12 months to compete, given the potential for multiple reviews. prescribed price.
Shares of VMware have fallen about 8.2% since the deal announced on May 26, compared with a 3.9% drop in the tech-heavy Nasdaq Composite Index.
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