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Investing.com -- Shares of Juniper Networks (NYSE:JNPR) fell sharply by 6.5% amid concerns that a Department of Justice (DOJ) lawsuit may obstruct its proposed acquisition by Hewlett Packard Enterprise (NYSE:HPE). The decline in stock value is reportedly tied to cautious sentiments stemming from a report by Capital Forum, which indicated the DOJ's intent to challenge the $14 billion deal.
In January, Juniper Networks and HPE had announced a definitive agreement for an all-cash transaction valued at approximately $14 billion, or $40.00 per share. However, the recent report from Capital Forum has cast doubt on the transaction's completion, suggesting that the DOJ will seek to block the deal. As of now, Capital Forum has not provided a response regarding their report.
The potential legal challenge from the DOJ stands in contrast to the EU Commission's stance, which has already given unconditional approval to the takeover. The discrepancy between the regulatory bodies has contributed to the uncertainty surrounding the acquisition's outcome.
Juniper Networks has not publicly commented on the report or the potential impact of a DOJ lawsuit on the merger with HPE. The company's stock movement reflects traders' reactions to the unverified report, which has yet to be confirmed by the DOJ or other official sources.
Investors are advised to monitor the situation closely, as further developments regarding the DOJ's stance and any official legal actions could significantly influence Juniper Networks' stock and the future of the deal with HPE.
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