DOJ Files Lawsuit to Block HPE's $14B Acquisition of Juniper Networks

The U.S. Department of Justice (DOJ) filed a lawsuit on February 1, 2025, to block Hewlett Packard Enterprise's (HPE) proposed $14 billion acquisition of Juniper Networks, which was initially agreed upon earlier in the year at $40 per share. The DOJ argues that the merger would violate the Clayton Act by reducing competition and innovation in the tech sector, particularly in the wireless LAN (WLAN) market where HPE and Juniper are the second and third largest vendors. Acting Assistant Attorney General Omeed A. Assafi stated that the merger would harm American businesses reliant on wireless networks. HPE and Juniper have criticized the lawsuit as flawed, asserting it would enhance competition against Cisco Systems, which holds a 41% market share. Industry experts, including Zeus Kerravala and Crawford Del Prete, support the merger, arguing it would create a stronger competitor and drive innovation. The DOJ's stance contrasts with global regulators, including those in the UK and EU, who have approved the merger without objection. [76974e2a]

In a related development, the U.K.'s Competition and Markets Authority (CMA) had previously launched an inquiry into HPE's potential acquisition of Juniper Networks. The CMA was investigating whether the transaction could result in a substantial lessening of competition within any market in the U.K. This inquiry was open for comments until July 3, with a decision expected by August 14. In April, Juniper's shareholders approved the deal, valuing the networking company at about $14 billion. The deal was not expected to need approval in China as it fell below the country's merger threshold. However, the status of the U.S. regulatory review has caused uncertainty about the deal. [de7a57bc]

In the context of the broader market, JP Morgan CEO Jamie Dimon has sold a total of 1 million JPMorgan shares, earning $183 million in proceeds. This includes $33 million worth of stock sold on Monday and a $150 million tranche sold in February. Dimon's sales were motivated by financial diversification and tax planning purposes, marking the first time he has sold JPMorgan shares in 19 years. Despite the disposals, Dimon still retains ownership of approximately 8.7 million shares. In his annual letter to shareholders, Dimon expressed concerns about potential threats to financial markets and the U.S. economy, such as rising tensions, inflation, and foreign conflicts. [c43f7607]

JPMorgan Chase has raised its forecast for net interest income (NII) to $91 billion for 2024, excluding the markets division. The previous forecast of $89 billion had disappointed analysts. The bank's shares rose about 1% ahead of its investor day event. JPMorgan acquired billions in loans after buying First Republic Bank last May, boosting interest income and profits. The bank expects total expenses in 2024 to be about $92 billion. CEO Jamie Dimon has identified Jennifer Piepszak, Troy Rohrbaugh, Marianne Lake, and Mary Erdoes as candidates for the top job. [2bbea38c]

Goldman Sachs Group Inc. has increased its stake in Juniper Networks, Inc. (NYSE:JNPR) by 6.4% in the 4th quarter, purchasing an additional 219,410 shares. The fund now owns 3,646,833 shares of Juniper Networks, worth $107,509,000. CEO Rami Rahim sold 5,555 shares of Juniper Networks stock at an average price of $37.06, while CFO Kenneth Bradley Miller sold 15,000 shares at an average price of $34.47. Juniper Networks stock is currently trading at $35.46 on the NYSE. The company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $0.18. Juniper Networks also announced a quarterly dividend of $0.22 per share, with a dividend yield of 2.48%. The ex-dividend date is June 3rd. The stock has a consensus rating of 'Hold' and a consensus price target of $34.55. [19711c31]

CNO Financial's Chief Information Officer, Mead Michael E., sold 7,690 shares of the company's common stock on May 28, 2024, for a total value of over $217,588. The shares were sold at a weighted average price of $28.295. The sale was conducted under a Rule 10b5-1 trading plan. CNO Financial Group is a holding company for a group of insurance companies operating in the United States. [11cd7a69]