HP Enterprise (HPE.US), the server producer that split from HP (HPQ.US), announced the issuance of $1.35 billion in mandatory convertible preferred shares to pay for the acquisition of network equipment maker Juniper Networks (JNPR.US), and shares fell more than 6% in after-market trading to a record 5.3%.
HP IMPLIES THAT THE PREFERRED SHARES WILL BE COMPULSORILY CONVERTED TO ORDINARY SHARES ON SEPTEMBER 1, 2027, UNLESS THE SHARES IN QUESTION HAVE BEEN CONVERTED OR REPURCHASED. Citigroup, JPMorgan Chase and Mizuho will serve as joint book-running managers.
HP offered to acquire Juniper Networks for $14 billion in cash earlier this year to strengthen the company's artificial intelligence offerings.