Red Hat jumps, IBM shares dip on cloud mega-merger

By Pushkala Aripaka (Reuters) - IBM Corp's $34 billion deal to buy Red Hat Inc drove shares in the small but fast-growing software maker about 50 percent higher on Monday, reflecting the huge premium IBM is paying to ward off any potential challenger bids. At $172, shares of Red Hat were still trading around $18 short of the $190 price agreed by the two companies in Sunday's announcement, and analysts said that pointed to some remaining nerves among investors over the chances of the deal closing. The breakup fee for the deal, which would be among the largest on record in the tech sector, has yet to be announced and a high fee would also deter Red Hat from entertaining other buyers

from Latest News Business on Firstpost https://ift.tt/2CMTU0S