Why Broadcom Stock Is Trading Higher Monday
Broadcom Inc (NASDAQ:AVGO) shares are trading higher Monday after the company provided an update on its pending transaction with VMware Inc (NYSE:VMW).
What To Know: Broadcom and VMware announced on Monday that they expect their previously announced transaction to close soon, specifically ahead of the expiration of the merger agreement. Broadcom noted that there is currently no legal roadblock to closing the deal under U.S. merger regulations.
The two companies also announced the results of the elections regarding the form of consideration for VMware shareholders. Each shareholder will receive $142.50 in cash or 0.2520 shares of Broadcom for each share of VMware common stock held immediately prior to closing of the deal.
Approximately 52.1% of VMware stock will be converted for Broadcom stock and approximately 47.9% will be converted into the right to receive the cash consideration in accordance with the proration procedures in the parties' merger agreement.
Broadcom is expected to report quarterly results sometime near the end of November, according to Benzinga Pro.
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AVGO Price Action: Broadcom shares were up 1.51% at $851 at the time of publication.
Photo: Florian Knodt from Flickr.