BKI - VMware/Broadcom deal spread widens amid notice of FTC closed door meeting

2023-08-14 15:46:22 ET

The deal spread in Broadcom's ( AVGO ) planned $61 billion purchase of VMware ( NYSE: VMW ) widened amid a notice about a closed-door Federal Trade Commission meeting on Wednesday. The spread widened to $22.04 from $20.54.

The FTC listed one new closed door meeting on its website for 4:30 p.m. on Tuesday.

Investors often speculate when meeting notices are given that the FTC may be voting on an ongoing deal that's being reviewed. While sometimes these meetings are about public companies, oftentimes they are about private firms.

This is the second time in recent months that the VMW/AVGO deal spread widened amid an FTC meeting notice. The spread also widened in April after the FTC listed two new closed door meetings on its website at the time.

The speculation about VMW/AVGO comes as investors are waiting to hear what the antitrust regulator plans to do after the deal won provisional approval from the UK and also from the European Commission last month.

Other potential deals that the FTC may be voting on include Intercontinental Exchange's ( ICE ) planned purchase of Black Knight, where the FTC and the companies jointly agreed to dismiss their federal court case as they work toward a settlement that would allow ICE to acquire Black Knight.

The meeting may also concern Amazon ( AMZN ) amid a report from Reuters last week that Amazon ( AMZN ) was expected to meet with the FTC ahead of a potential antitrust lawsuit against the retailer.

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