Broadcom potential deal for VMware said to include majority of stock
Justin Sullivan/Getty Images News


Broadcom's (NASDAQ:AVGO) potential deal for VMware (NYSE:VMW) is said expected to include a majority of the consideration in stock, though there will also be a large cash element.
Financing for the deal is said to be in place and a transaction may be announced as soon as this week, according to traders, who cited a Bloomberg report.

The latest update comes after Bloomberg report on Sunday night that Broadcom (AVGO) was said in talks to acquire cloud-computing company VMware (VMW). The FT reported that a deal could be valued at about $50 billion. CNBC's David Faber also reported that a deal could be announced by Thursday, when VMW is scheduled to report its results, though "material" terms of a transaction still need to completed.
VMware (VMW) surged 21% on the original report, while Broadcom (AVGO)
fell 3.9%.

Earlier Monday BofA said that a deal for VMW could create "overhang" for Broadcom (AVGO) shares.