Home > Article > Technology peripherals > New twist in the $14 billion acquisition: Shareholders sue Juniper Networks, criticizing executives for hiding huge profits
Hewlett Packard Enterprise (HPE) announced in January last year that it would acquire network equipment manufacturer Juniper Networks for all cash. This acquisition means HPE will further strengthen its artificial intelligence (AI) product line to meet growing market demand. The transaction aims to provide more innovative solutions to help customers address increasingly complex business challenges. By integrating Juniper's technology and expertise, HPE will be able to accelerate its growth in AI and provide customers with more powerful solutions. This move will also further consolidate HPE’s network product portfolio. They do not approve of the deal and demand a more detailed and fair review.
According to Zaita’s lawyers, Rahim and others sought to sell Juniper to HPE primarily for high financial gain. The lawsuit states that Juniper insiders will be the "primary beneficiaries" of the deal. The source of the conflict is that as Juniper Networks is acquired by HPE, internal board members and executives at the company will receive huge profits from the acquisition. These executives hold a large number of non-tradable shares and will benefit through a share exchange and appropriate compensation once the transaction is completed. In contrast, Zaita and other ordinary public shareholders were unable to share in such dividends, which led to their dissatisfaction and protests against the transaction.
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