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MONSEY, N.Y., May 26, 2022 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether the directors of VMware, Inc. (ticker: VMW) (“VMware”) acted in the best interests of VMware shareholders in approving the sale of VMware to Broadcom Inc. (“Broadcom”) for $61 billion in cash and stock, resulting in total consideration of approximately $138.23 per VMware share based on the closing price of Broadcom stock on May 25, 2022.
If you remain a VMware shareholder and have questions about your legal rights, you may contact our firm at the following link to discuss your options at no charge:
https://wohlfruchter.com/cases/vmware/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
Why is there an investigation?On May 26, 2022, VMware announced an agreement under which Broadcom will acquire all of the outstanding common shares of VMware for $61 billion in cash and stock. Under the terms of the deal, VMware stockholders can elect to receive $142.50 in cash or 0.2520 share of Broadcom common stock for each VMware share they own.
The shareholder election will be subject to proration, resulting in approximately 50% of VMware’s shares being exchanged for cash and 50% being exchanged for Broadcom common stock. Based on the closing price of Broadcom common stock on May 25, 2022, the total consideration is approximately $138.23 per VMware share.
The deal was approved by the VMware board (“Board”). Our investigation concerns whether the members of the VMware Board acted in the best interests of VMware shareholders in approving the sale to Broadcom, including whether the price being paid adequately compensates VMware shareholders, and whether all material information regarding the transaction has been fully disclosed.
In particular, according to an analysis of Wall Street VMW price targets in the last 90 days published on Seeking Alpha, VMware has a high price target of $175.00 per share, and an average price target of $140.22 per share, both which are above the total consideration per share that Broadcom has agreed to pay.
About Wohl & Fruchter Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:Wohl & Fruchter LLPJoshua E. Fruchter Toll Free 866.833.6245alerts@wohlfruchter.comwww.wohlfruchter.com
Source: Wohl & Fruchter LLP
