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HashiCorp (NASDAQ:HCP) edged lowed by almost 1% amid some investor concern that its planned sale to IBM (NYSE:IBM) will get a request for more information from antitrust regulators.
Investors are worried that the Federal Trade Commission will issue a second request as a Friday deadline for the regulator approaches, according to traders, who cited chatter circulating on Tuesday.
The weakness comes after Capitol Forum last month reported that the FTC is studying the potential for reduced competition and innovation in cloud software and encryption tools. The FTC staff is asking if customers of HashiCorp (HCP) could find alternatives to its products after the deal is completed.
CTFN also reported last month that while the Dept. of Justice was ready to allow the deal to close, the FTC didn’t have enough time to finish its review and so IBM had to pull and refile its premerger notification last month to give the regulator additional time.
IBM in late April agreed to buy HashiCorp (HCP) for $35 a share in cash.