No inflation here: VMware is likely not getting a higher bid
Despite persistent concerns about inflation throughout the economy, one area where investors should not expect to see prices keep rising is another bid for VMware (NYSE:VMW).
KeyBanc Capital Markets analyst Thomas Blakey noted that Broadcom's (NASDAQ:AVGO) bid for VMware (VMW), which has a go-shop period until July 5, is likely to be best and final.
"As weâve stated, we view Broadcomâs longstanding vision to be a strategic infrastructure IT partner for enterprises globally as a logical fit with our prior ... thesis on [VMware] shares, centered on sustainable profitable growth driven by secular hybrid multi-cloud demand trends," Blakey wrote in a note to investors.
The analyst downgraded VMware (VMW) to sector weight from overweight as a result of the deal, which will see Broadcom (AVGO) acquire VMware (VMW) for $61B in cash and stock.
Broadcom's (AVGO) planned acquisition includes a 40-day go shop fee, where VMware (VMW) can solicit alternative proposals, with the provision likely added because the deal was completed in just a few weeks. 
If for some reason, VMware (VMW) gets another offer, it would be required to pay Broadcom (AVGO) a $1.5B termination fee. However, according to Blakey, that's not likely to happen.
Earlier this week, it was reported that the Broadcom (AVGO) deal for VMware (VMW) would likely see antitrust pushback, especially from other industry players who see VMware as the "Switzerland" of the data center segment.