1 00:00:00,040 --> 00:00:01,880 Speaker 1: Let's take a quick look at shares of HPE and 2 00:00:01,960 --> 00:00:05,560 Speaker 1: Juniper Networks. The DOJ yesterday announcing it's suing to stop 3 00:00:05,559 --> 00:00:08,720 Speaker 1: the fourteen billion dollar acquisition of Juniper Networks, arguing the 4 00:00:08,760 --> 00:00:12,440 Speaker 1: merger would harm competition in the market for enterprise wireless equipment. 5 00:00:12,960 --> 00:00:15,680 Speaker 1: We're rallying off the back of some fools yesterday joining 6 00:00:15,760 --> 00:00:20,000 Speaker 1: us now, Antonio Nairy, HPE CEO, and you have fought 7 00:00:20,000 --> 00:00:23,920 Speaker 1: back saying the DOJ is ignoring key competitors here. Why 8 00:00:24,000 --> 00:00:24,720 Speaker 1: are they doing that? 9 00:00:26,079 --> 00:00:28,040 Speaker 2: Welcome on to Kara, and thank you for having me. 10 00:00:28,800 --> 00:00:32,520 Speaker 2: We believe the thesis from the EJ is flawed because 11 00:00:32,560 --> 00:00:35,520 Speaker 2: they consider the market very narrowly in the wireless line, 12 00:00:35,680 --> 00:00:39,559 Speaker 2: only three competitors, when the reality there are eight. You know, 13 00:00:39,960 --> 00:00:44,360 Speaker 2: even industry analysts came out yesterday, you know, stating that 14 00:00:44,360 --> 00:00:47,959 Speaker 2: that's the case. So as we go in through the process, 15 00:00:48,560 --> 00:00:51,600 Speaker 2: we understood that that's going to be a challenge, but 16 00:00:51,800 --> 00:00:54,600 Speaker 2: ultimately we believe there is no case here. This is 17 00:00:54,640 --> 00:00:59,800 Speaker 2: pro competitive. We'll bring it too complementary technologies together, which 18 00:01:00,040 --> 00:01:02,680 Speaker 2: so will enable us to compete outside the United States. 19 00:01:03,120 --> 00:01:05,400 Speaker 2: In the context of the previous conversation we have with 20 00:01:05,480 --> 00:01:09,760 Speaker 2: Josh against the Chinese vendors in the context of national security, 21 00:01:09,760 --> 00:01:13,640 Speaker 2: particularly in cloud and the service provider space. So that's 22 00:01:13,680 --> 00:01:16,480 Speaker 2: why we're going to fight this vigorously and we believe 23 00:01:16,480 --> 00:01:19,280 Speaker 2: we're going to prevail through the process. 24 00:01:19,640 --> 00:01:22,240 Speaker 1: Do your lawyers think you will prevail? It's interesting, of 25 00:01:22,280 --> 00:01:25,400 Speaker 1: course other regulators signed this off, so it must have 26 00:01:25,440 --> 00:01:26,040 Speaker 1: been a surprise. 27 00:01:27,520 --> 00:01:31,240 Speaker 2: Yeah, it was a surprise because fourteen of these sixteen 28 00:01:31,360 --> 00:01:35,039 Speaker 2: jurisdictions around the globe approved the deal pretty much by 29 00:01:35,080 --> 00:01:38,840 Speaker 2: September last year, which was very very quick. You know, 30 00:01:38,920 --> 00:01:43,200 Speaker 2: since the announcement was January nine, twenty twenty fourth, and 31 00:01:43,240 --> 00:01:46,600 Speaker 2: that included in the UK and the European Union. They 32 00:01:46,680 --> 00:01:51,160 Speaker 2: never asked for a second request. Customer testimony was always 33 00:01:51,160 --> 00:01:53,960 Speaker 2: in favor of the transaction, and that's why, you know, 34 00:01:54,200 --> 00:01:58,440 Speaker 2: since September we were pretty much substantially complete with the 35 00:01:58,520 --> 00:02:01,040 Speaker 2: DJA process. But obviously it's through the elections and the 36 00:02:01,240 --> 00:02:04,360 Speaker 2: like we took us to today and then you know, 37 00:02:04,440 --> 00:02:08,600 Speaker 2: when I meet with the DOJ on Tuesday, nothing new 38 00:02:08,639 --> 00:02:11,800 Speaker 2: came out of that conversation, and therefore, you know, we 39 00:02:11,840 --> 00:02:16,160 Speaker 2: are surprised and disappointed, but ultimately we believe this is 40 00:02:16,200 --> 00:02:19,200 Speaker 2: pro competitive and we believe this is the interested on 41 00:02:19,280 --> 00:02:25,040 Speaker 2: the national security in alignment with the current administration agenda, 42 00:02:25,440 --> 00:02:28,480 Speaker 2: and that's why from a puran the trust perspective, we 43 00:02:28,600 --> 00:02:30,320 Speaker 2: believe we have a case here for us. 44 00:02:31,360 --> 00:02:33,440 Speaker 3: And tell you, did you try in the course of 45 00:02:33,480 --> 00:02:37,440 Speaker 3: those conversations with the Justice Department ahead of the losses 46 00:02:37,520 --> 00:02:41,680 Speaker 3: being filed to negotiate something or perhaps offer concessions. What 47 00:02:41,840 --> 00:02:44,880 Speaker 3: might those have been and what did DOJ ask you for? 48 00:02:46,680 --> 00:02:49,320 Speaker 2: No, it was not necessary and the DOJ never asked 49 00:02:49,320 --> 00:02:54,600 Speaker 2: for any concessions whatsoever. They asked us through the process 50 00:02:54,639 --> 00:02:59,040 Speaker 2: several extensions, but we never discussed remediation or any concessions 51 00:02:59,040 --> 00:02:59,960 Speaker 2: as part of the proval. 52 00:03:01,639 --> 00:03:04,919 Speaker 3: Are you a little surprised them by the current administration 53 00:03:05,200 --> 00:03:09,600 Speaker 3: actually following through with this case. You pointed to its 54 00:03:09,720 --> 00:03:13,080 Speaker 3: posture when it comes to competitiveness in the US and 55 00:03:13,240 --> 00:03:18,280 Speaker 3: trying to foster investment. How does this square with what 56 00:03:18,560 --> 00:03:21,760 Speaker 3: the President, for instance, would be talking about when it 57 00:03:21,760 --> 00:03:22,480 Speaker 3: comes to business. 58 00:03:23,639 --> 00:03:27,440 Speaker 2: Well, Mike, we don't have yet the permanent leaders, neither 59 00:03:27,480 --> 00:03:32,000 Speaker 2: of the DOJ nor at the Antitrust Division, so we're 60 00:03:32,040 --> 00:03:35,040 Speaker 2: looking forward to have them on board. We hope that 61 00:03:35,120 --> 00:03:37,720 Speaker 2: they will take a second look at the case and 62 00:03:37,880 --> 00:03:42,800 Speaker 2: realize that this transaction is core tech, no big tech. 63 00:03:43,400 --> 00:03:47,560 Speaker 2: Remember that both Juniper Networks and HP powers a lot 64 00:03:47,640 --> 00:03:51,720 Speaker 2: of the United States infrastructure in the Department of Defense, 65 00:03:52,120 --> 00:03:57,840 Speaker 2: Department of Energy, and many other administrations across the government. 66 00:03:58,360 --> 00:04:01,560 Speaker 2: And so we're hopeful that when the administration is in charge, 67 00:04:01,600 --> 00:04:03,720 Speaker 2: they're going to look at this and take a second 68 00:04:03,720 --> 00:04:07,680 Speaker 2: look and realize this is aligned perfectly with the agenda 69 00:04:07,720 --> 00:04:11,480 Speaker 2: that the President has America First, building the United States. 70 00:04:11,920 --> 00:04:15,240 Speaker 2: Let's remind yourself a lot of the equipment that HP 71 00:04:15,920 --> 00:04:19,200 Speaker 2: produces today for the United State governments building the United 72 00:04:19,240 --> 00:04:23,200 Speaker 2: States and also outside the United States to compete with China. 73 00:04:23,600 --> 00:04:25,960 Speaker 2: The reason why the market looks the way it looks 74 00:04:26,000 --> 00:04:29,240 Speaker 2: in the United States, which is eight vendors, and this 75 00:04:29,360 --> 00:04:33,960 Speaker 2: is data from the industry analysts, which we provided obviously 76 00:04:34,000 --> 00:04:37,400 Speaker 2: tremendous amount of documentation, is because Worldwide is not allowed 77 00:04:37,440 --> 00:04:39,159 Speaker 2: to play in the United States, but when you go 78 00:04:39,160 --> 00:04:42,200 Speaker 2: outside the United States, they're actually nine menders. 79 00:04:42,800 --> 00:04:45,520 Speaker 1: It does feel like China continues to be the bogeyman 80 00:04:45,960 --> 00:04:47,640 Speaker 1: that a lot of companies are going to turn on 81 00:04:47,720 --> 00:04:50,640 Speaker 1: to try and get things through. And ultimately I put 82 00:04:50,680 --> 00:04:53,520 Speaker 1: to you that James McHenry, who's the acting Attorneys General 83 00:04:53,520 --> 00:04:56,040 Speaker 1: at the moment in the US, probably want to pursue 84 00:04:56,040 --> 00:04:57,760 Speaker 1: this and as it got some sort of sign off 85 00:04:57,760 --> 00:05:03,520 Speaker 1: from the new administration, more pro business administration. So do 86 00:05:03,600 --> 00:05:05,479 Speaker 1: you think really this is going to land any differently 87 00:05:05,480 --> 00:05:06,120 Speaker 1: with Hamboni. 88 00:05:07,640 --> 00:05:11,560 Speaker 2: We don't know, Karen. I will not speak related to that. 89 00:05:12,120 --> 00:05:14,479 Speaker 2: Excuse me for my voice. I will not speculate in that. 90 00:05:15,520 --> 00:05:18,040 Speaker 2: You know, we have dealt with the Department of Energy 91 00:05:18,400 --> 00:05:23,600 Speaker 2: Anti Trust Division. We were very collaborative, constructive throughout the process, 92 00:05:24,240 --> 00:05:26,679 Speaker 2: and we hope that the new administration one is in charge, 93 00:05:26,720 --> 00:05:28,760 Speaker 2: they're going to look at this and they will bring 94 00:05:28,839 --> 00:05:31,360 Speaker 2: us back at the table. Otherwise, you know, we will 95 00:05:31,400 --> 00:05:35,000 Speaker 2: pursue the actions through the court. They were the ones 96 00:05:35,240 --> 00:05:39,240 Speaker 2: decided to file the lawsuit to block the transaction, and 97 00:05:39,279 --> 00:05:42,400 Speaker 2: we believe we have the right to defend ourselves there 98 00:05:43,240 --> 00:05:46,159 Speaker 2: and we believe that we can prevail through the just 99 00:05:46,240 --> 00:05:49,400 Speaker 2: the anti trust aspect of the case. And then in 100 00:05:49,400 --> 00:05:52,640 Speaker 2: addition to that, we hope that also the national security 101 00:05:53,200 --> 00:05:55,560 Speaker 2: aspects of this are considered as well. 102 00:05:56,000 --> 00:05:58,680 Speaker 3: Hpe CEO Antonio Neri, thank you.