The stock price of Hashi Corporation (NASDAQ:Health professional) dropped by almost 1% following concerns among investors regarding its planned sale to IBM (NYSE:IBM). There are worries that antitrust regulators may request more information regarding the deal, with rumours circulating that the Federal Trade Commission may issue a second application as a Friday deadline looms. These concerns stem from reports last month by Capitol Forum, suggesting that the FTC is investigating potential issues related to competition and innovation in cloud software and encryption tools.
FTC staff are reportedly questioning whether HashiCorp’s customers would have alternative options once the deal with IBM is finalized. Additionally, CTFN reported that while the Justice Department was inclined to allow the deal to proceed, the Federal Trade Commission had not completed its review, leading IBM to withdraw and resubmit their pre-merger notification last month to allow for additional time for regulatory scrutiny.
In late April, IBM announced plans to acquire HashiCorp for $35 per share in cash. The uncertainty surrounding the deal and the potential intervention by antitrust regulators have contributed to the drop in Hashi Corporation’s stock price. Investors are closely monitoring the situation as the Friday deadline approaches, eager to see how the regulatory process unfolds and how it may impact the proposed acquisition.
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https://seekingalpha.com/news/4123075-hashicorp-falls-amid-concern-about-ftc-2nd-request-for-ibm-deal
