VMWare ( NYSE: VMW ) fell 2% on a report that the Federal Trade Commission is said to be talking to industry players to get their input on the proposed Broadcom ( NASDAQ: AVGO ) acquisition.
FTC staff are said to be reaching out to third parties to see if they maybe willing to sign declarations for a possible lawsuit to block the megadeal, according to traders, who cited a Capitol Forum item that was circulating on Friday.
The report comes after the UK's antitrust regulator late last month said it would investigate Broadcom's ( AVGO ) $61 billion proposed acquisition of VMware ( VMW ). The CMA has until March 22 to make a decision on whether the deal will impact competition.
In December Dealreporter said the FTC review is focused o n conglomerate effects of the combination.
In May, Broadcom ( AVGO ) announced it was buying VMware ( VMW ) for $61B in cash and stock, becoming one of the largest M&A deals of the year.
In December the European Union said it would open up an "in-depth" investigation into Broadcom's ( AVGO ) merger of software company VMware .
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VMW stock drops on report FTC talking to third parties in Broadcom deal review