VMware sinks on report of China approval uncertainty for Broadcom deal

VMware

17/10/2023 15:34

(Updates)
    ** Cloud-computing firm VMware  VMW.N  falls 7.8% to $165
    ** A report by Seeking Alpha says the timing of China
approval for the Broadcom  AVGO.O  deal appears to now depend on
the macro environment, citing traders
    ** Chinese antitrust regulator may take additional time to
finalize its review, the financial news website reported
    ** Reuters could not independently verify the information
    ** VMware said it continues to expect the deal to close on
Oct. 30 in a statement sent by mail; Broadcom did not
immediately respond to a Reuters request for comment 
    ** "You're seeing risk arbitrage traders just sell first,
ask questions later so they are hitting VMware very
substantially this morning" - Dennis Dick, market structure
analyst at Triple D Trading
    ** Chipmaker Broadcom had last year said it would acquire
VMW in a $61 bln cash-and-stock deal
    ** Shares of AVGO fall 2.5% to $881 
    ** As of last close, VMW shares have gained ~46 YTD

 (Reporting by Samrhitha Arunasalam)
 ((Samrhitha.A@thomsonreuters.com))