VMware, which had 40 days to solicit rival offers, may
disclose the outcome of that effort, although its plans haven't been finalised,
said one of the people, who asked to not be identified because the matter isn't
public. VMware had until 11:59 PM Pacific time Tuesday (12:29 AM IST Wednesday)
to solicit other bids, according to the deal announcement in May.
Representatives for VMware and Broadcom couldn't immediately
be reached for comment.
The expiration of the go-shop gets Broadcom past at least
one hurdle to the biggest-ever takeover by a semiconductor maker. The clause
helped Broadcom secure a merger agreement with the company, a Silicon Valley
pioneer that provides virtualisation software.
To move swiftly during takeover negotiations, VMware agreed
to forgo speaking with other potential bidders so long as a go-shop was
included in the agreement, Bloomberg News reported last month. Go-shops are
rare in deals this big.
Broadcom's offer had the support of key VMware shareholders
Michael Dell and Silver Lake.
Merger specialists surveyed by Bloomberg News in May said
there was a low probability that a higher bid would emerge and expected the
deal to take about 12 months to compete, due to the potential for multiple
regulatory reviews.
VMware's stock has fallen about 8.2 percent since the deal
was announced on May 26, compared with a 3.9 percent decline in the tech-heavy
Nasdaq Composite Index. © Bloomberg
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