How's HPE buyout deal of Juniper Networks?

JacksNiffler
01-09

Abstract

$Juniper Networks(JNPR)$ saw a 22% post-market surge after reports of potential acquisition talks by $Hewlett Packard Enterprise(HPE)$ for about $13 billion, causing HPE's stocks to drop by 7.5%. Market sentiments suggest uncertainty despite the strategic fit with HPE's wireless business.

Facts

  • 💼 HPE plans to acquire Juniper Networks (JNPR) for around $13 billion, causing a 22% surge in JNPR's market value.

  • 📉 HPE's stocks plummeted by 7.5% post-market upon news of the potential acquisition, highlighting market doubts about the Synergy between the companies.

  • 💰 JNPR's market value, after the 22% surge, stands at approximately $11.8 billion, representing a 10.3% premium from its prior market value of $9.6 billion.

  • 📆 The estimated completion of the acquisition within a year indicates a modest 10.3% return for involved investors, potentially lacking allure for further investment.

  • 📈 Short-term gains through trading options might offer higher returns compared to the limited acquisition return over a year.

  • 🛑 Regulatory approvals may not pose significant hurdles, making time costs and return rates more critical considerations in this potential deal.

M&A: Profit From Long-Term Arbitrage Opportunity
Due to the gap between acquisition prices and stock prices, mergers and acquisitions of listed companies always bring arbitrage opportunities. ------------------------- Which acquisition cases are worth paying attention to? How can we profit from them? Follow this topic to explore more investment opportunities.
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