Thread regarding VMware layoffs

FTC Increases Risk for Acquirers by Extending Time for Review

https://www.natlawreview.com/article/ftc-increases-risk-acquirers-extending-time-review

Now, in transactions in which the FTC has not completed its review before the waiting period expires, the acquirer may be contractually compelled to close and face an increased risk of FTC litigation, and possibly a compulsory divestiture. Under such circumstances, divestitures often take place at “fire sale” prices or on other undesirable terms.

by
| 1614 views | | 2 replies (last November 6, 2023) | Reply
Post ID: @OP+1ps08p26

2 replies (most recent on top)

Compliance with HSR and expiration of the waiting period is not a defense to an unlawful merger.7

by
| | Reply
Post ID: @ead+1ps08p26

So if Broadcom closes acquisiton without explicit FTC approval they are risking a FTC lawsuit which could result in divesture of VMware. Not sure how the shareholders of AVGO and VMW feel about this. Sounds like recipe for a class action lawsuit as well. At least Broadcom legal team will never run out of work

by
| | Reply
Post ID: @kjq+1ps08p26

Post a reply

: