VG - Vonage drops amid call with CFIUS expert on Ericsson deal

Vonage (NASDAQ:VG) fell 4.7% after five previous days of declines amid investor concern about the sale to Ericsson (NASDAQ:ERIC) after the telecom company revealed on Thursday that the the SEC has opened a probe into the 2019 Iraq report. Tuesday's decline came amid a sell-side analyst call with a CFIUS expert. The consultant argued that Ericsson's (ERIC) DPA breach may delay CFIUS timing as the lead agency reviewing the deal at CFIUS must make sure there are no unresolved national security concerns. The DOJ is likely to be the lead at CFIUS given its history of reviewing telecom transactions. Despite the possible delays, odds of CFIUS block are de minimis, according to Churchill's Nick Pappas, who spoke with the CFIUS consultant. Vonage (VG) agreed to be sold to Ericsson (ERIC) for $6.2 billion in November. Investors have been concerned that a national security or CFIUS review of the $21/share deal could be delayed due to

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Vonage drops amid call with CFIUS expert on Ericsson deal