VMware falls amid UK block of Activision/Microsoft deal
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VMware Inc. (NYSE:VMW), which agreed to a $61 billion sale to Broadcom (NASDAQ:AVGO) last year, dropped 1.7% after the UK's antitrust authority blocked Microsoft's (MSFT) planned $69 billion acquisition of Activision (ATVI). The deal spread widened by $1.32 to $24.81. 
VMware (VMW) is likely falling in sympathy after the UK blocked the Activision (ATVI) videogame megadeal as its sale to Broadcom (AVGO) is also being reviewed by the UK antitrust regulator, as well as U.S. and Europe's antitrust authority. 
Late last month the UK's Competition and Markets Authority moved its review of VMware/Broadcom into a Phase 2, or an in-depth investigation, with the deadline set for September 12, for the agency to decide on the deal. 
The VMware (VMW) sale to Broadcom has seen increased regulatory scrutiny in recent months, with Europe's antitrust regulator issuing a "statement of objections" over the proposed deal earlier this month. The deal received a "second request" from the FTC in late July.
A week ago, a UBS analyst said VMware's (VMW) stock could fall to $115 if it was scuttled due to regulatory issues, up from an earlier estimate of $100.