The U.S. Department of Justice is reportedly preparing a legal challenge to Hewlett Packard Enterprise’s (HPE) $14 billion takeover of Juniper Networks (JNPR).
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The challenge comes as the administration of U.S. President Joe Biden prepares a final flurry of antitrust enforcement actions against technology companies ahead of the change of government that’s scheduled to take place in January.
The Biden administration’s top antitrust officials plan to take some final shots at the technology industry before leaving office as they look to put an exclamation mark on four years of aggressive enforcement. As for Hewlett Packard Enterprise, The Wall Street Journal is reporting that the Justice Department held a meeting with company officials in the last week to lay out the government’s concerns.
However, no final decision on whether to challenge the Juniper Networks acquisition has been made.
Targeting Big Tech
Beyond Hewlett Packard Enterprise, the Justice Department is also reportedly preparing to ask a judge to consider structural changes to the business of Google, going so far as to request that the dominant search engine divest itself of its Chrome browser or Android mobile operating systems.
At the same time, the Federal Trade Commission (FTC), which shares antitrust enforcement with the Justice Department, is planning to open an investigation into Microsoft’s (MSFT) green up pointing triangle cloud business. The probe will examine whether Microsoft’s agreements prevent cloud customers from considering alternative choices in the marketplace.
The Biden administration has repeatedly targeted big tech companies, accusing many of them of operating as a monopoly and stifling competition.
Is HPE Stock a Buy?
The stock of Hewlett Packard Enterprise has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on three Buy, eight Hold, and no Sell recommendations issued in the last three months. The average HPE price target of $21.55 implies 0.09% upside from current levels.