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

Juniper Networks

10/09/2024 14:40

(Updates to market open)
    ** Hewlett Packard Enterprise  HPE.N  shares drop >9% and
are biggest S&P 500  .SPX  losers early Tues as AI server maker
seeks capital raise to fund $14 bln acquisition of Juniper
Networks  JNPR.N 
    ** HPE shares fall as much as 9.4% to $15.95. Stock last off
7.2% at $16.33, lowest since Mar 4
    ** 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
    ** With moves on the session, shares down ~4% YTD. This
compares to 15% gain in SPX and 20% rise in S&P 500 Tech sector
 .SPLRCT  in 2024
    ** 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))