The deal spread in HP Enterprise’s (NYSE:HPE) planned $14 billion acquisition of Juniper Networks (NYSE:JNPR) widened amid a report about the status of the U.S. regulatory review of the deal.
The companies are responding to a second request from the Dept. of Justice, according to a CTFN report that was circulating among traders earlier Tuesday, which cited sources familiar with the matter.
HPE is said not be especially interested in the switching product that could be a potential area for sale if needed to appease regulators, according to the report.
The deal spread widened to $5.45 from $5.22 on Monday, the widest since the $40 a share deal was announced in early January.
Juniper (JNPR) late last month said when it reported Q1 results said that it expects the merger with HPE (HPE) to close in late 2024 or early 2025, subject to regulatory approvals.
M&A investors are particularly focused on if China will to need to review the JNPR/HPE deal. There was a report in late March that the transaction was unlikely to need approval in China as it falls below new revenue thresholds released in late January.
HPE CEO Antonio Neri said in January that he believes there’s a possibility that the acquisition won’t need Chinese approval.