Hewlett Packard drops on $1.35 bln convertible deal to fund Juniper buy

Juniper Networks

10/09/2024 13:12

** Shares of Hewlett Packard Enterprise  HPE.N  down 5% at
$16.72 before the bell as AI server maker seeks capital raise to
fund $14 bln acquisition of Juniper Networks  JNPR.N 
    ** HPE late Mon commenced $1.35 bln (27 mln shares) 3-yr
mandatory convertible preferred stock offering
    ** Citigroup, JP Morgan and Mizuho are joint bookrunners,
per the SEC filing
    ** On Thurs, HPE shares fell ~6% and closed at $17.64 after
co boosted annual profit forecast on AI strength, but margin
contraction weighed on sentiment
    ** Through Mon, shares up ~3.7% YTD vs S&P 500's  .SPX 
14.7% gain and S&P 500 Tech sector's  .SPLRCT  19.3% advance
    ** Avg rating among 16 analysts covering HPE is "hold" with
median PT of $21, per LSEG

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))