WEBVTT - HPE CEO Antonio Neri Talks DOJ Suit Against Juniper Acquisition

0:00:00.040 --> 0:00:01.880
<v Speaker 1>Let's take a quick look at shares of HPE and

0:00:01.960 --> 0:00:05.560
<v Speaker 1>Juniper Networks. The DOJ yesterday announcing it's suing to stop

0:00:05.559 --> 0:00:08.720
<v Speaker 1>the fourteen billion dollar acquisition of Juniper Networks, arguing the

0:00:08.760 --> 0:00:12.440
<v Speaker 1>merger would harm competition in the market for enterprise wireless equipment.

0:00:12.960 --> 0:00:15.680
<v Speaker 1>We're rallying off the back of some fools yesterday joining

0:00:15.760 --> 0:00:20.000
<v Speaker 1>us now, Antonio Nairy, HPE CEO, and you have fought

0:00:20.000 --> 0:00:23.920
<v Speaker 1>back saying the DOJ is ignoring key competitors here. Why

0:00:24.000 --> 0:00:24.720
<v Speaker 1>are they doing that?

0:00:26.079 --> 0:00:28.040
<v Speaker 2>Welcome on to Kara, and thank you for having me.

0:00:28.800 --> 0:00:32.520
<v Speaker 2>We believe the thesis from the EJ is flawed because

0:00:32.560 --> 0:00:35.520
<v Speaker 2>they consider the market very narrowly in the wireless line,

0:00:35.680 --> 0:00:39.559
<v Speaker 2>only three competitors, when the reality there are eight. You know,

0:00:39.960 --> 0:00:44.360
<v Speaker 2>even industry analysts came out yesterday, you know, stating that

0:00:44.360 --> 0:00:47.959
<v Speaker 2>that's the case. So as we go in through the process,

0:00:48.560 --> 0:00:51.600
<v Speaker 2>we understood that that's going to be a challenge, but

0:00:51.800 --> 0:00:54.600
<v Speaker 2>ultimately we believe there is no case here. This is

0:00:54.640 --> 0:00:59.800
<v Speaker 2>pro competitive. We'll bring it too complementary technologies together, which

0:01:00.040 --> 0:01:02.680
<v Speaker 2>so will enable us to compete outside the United States.

0:01:03.120 --> 0:01:05.400
<v Speaker 2>In the context of the previous conversation we have with

0:01:05.480 --> 0:01:09.760
<v Speaker 2>Josh against the Chinese vendors in the context of national security,

0:01:09.760 --> 0:01:13.640
<v Speaker 2>particularly in cloud and the service provider space. So that's

0:01:13.680 --> 0:01:16.480
<v Speaker 2>why we're going to fight this vigorously and we believe

0:01:16.480 --> 0:01:19.280
<v Speaker 2>we're going to prevail through the process.

0:01:19.640 --> 0:01:22.240
<v Speaker 1>Do your lawyers think you will prevail? It's interesting, of

0:01:22.280 --> 0:01:25.400
<v Speaker 1>course other regulators signed this off, so it must have

0:01:25.440 --> 0:01:26.040
<v Speaker 1>been a surprise.

0:01:27.520 --> 0:01:31.240
<v Speaker 2>Yeah, it was a surprise because fourteen of these sixteen

0:01:31.360 --> 0:01:35.039
<v Speaker 2>jurisdictions around the globe approved the deal pretty much by

0:01:35.080 --> 0:01:38.840
<v Speaker 2>September last year, which was very very quick. You know,

0:01:38.920 --> 0:01:43.200
<v Speaker 2>since the announcement was January nine, twenty twenty fourth, and

0:01:43.240 --> 0:01:46.600
<v Speaker 2>that included in the UK and the European Union. They

0:01:46.680 --> 0:01:51.160
<v Speaker 2>never asked for a second request. Customer testimony was always

0:01:51.160 --> 0:01:53.960
<v Speaker 2>in favor of the transaction, and that's why, you know,

0:01:54.200 --> 0:01:58.440
<v Speaker 2>since September we were pretty much substantially complete with the

0:01:58.520 --> 0:02:01.040
<v Speaker 2>DJA process. But obviously it's through the elections and the

0:02:01.240 --> 0:02:04.360
<v Speaker 2>like we took us to today and then you know,

0:02:04.440 --> 0:02:08.600
<v Speaker 2>when I meet with the DOJ on Tuesday, nothing new

0:02:08.639 --> 0:02:11.800
<v Speaker 2>came out of that conversation, and therefore, you know, we

0:02:11.840 --> 0:02:16.160
<v Speaker 2>are surprised and disappointed, but ultimately we believe this is

0:02:16.200 --> 0:02:19.200
<v Speaker 2>pro competitive and we believe this is the interested on

0:02:19.280 --> 0:02:25.040
<v Speaker 2>the national security in alignment with the current administration agenda,

0:02:25.440 --> 0:02:28.480
<v Speaker 2>and that's why from a puran the trust perspective, we

0:02:28.600 --> 0:02:30.320
<v Speaker 2>believe we have a case here for us.

0:02:31.360 --> 0:02:33.440
<v Speaker 3>And tell you, did you try in the course of

0:02:33.480 --> 0:02:37.440
<v Speaker 3>those conversations with the Justice Department ahead of the losses

0:02:37.520 --> 0:02:41.680
<v Speaker 3>being filed to negotiate something or perhaps offer concessions. What

0:02:41.840 --> 0:02:44.880
<v Speaker 3>might those have been and what did DOJ ask you for?

0:02:46.680 --> 0:02:49.320
<v Speaker 2>No, it was not necessary and the DOJ never asked

0:02:49.320 --> 0:02:54.600
<v Speaker 2>for any concessions whatsoever. They asked us through the process

0:02:54.639 --> 0:02:59.040
<v Speaker 2>several extensions, but we never discussed remediation or any concessions

0:02:59.040 --> 0:02:59.960
<v Speaker 2>as part of the proval.

0:03:01.639 --> 0:03:04.919
<v Speaker 3>Are you a little surprised them by the current administration

0:03:05.200 --> 0:03:09.600
<v Speaker 3>actually following through with this case. You pointed to its

0:03:09.720 --> 0:03:13.080
<v Speaker 3>posture when it comes to competitiveness in the US and

0:03:13.240 --> 0:03:18.280
<v Speaker 3>trying to foster investment. How does this square with what

0:03:18.560 --> 0:03:21.760
<v Speaker 3>the President, for instance, would be talking about when it

0:03:21.760 --> 0:03:22.480
<v Speaker 3>comes to business.

0:03:23.639 --> 0:03:27.440
<v Speaker 2>Well, Mike, we don't have yet the permanent leaders, neither

0:03:27.480 --> 0:03:32.000
<v Speaker 2>of the DOJ nor at the Antitrust Division, so we're

0:03:32.040 --> 0:03:35.040
<v Speaker 2>looking forward to have them on board. We hope that

0:03:35.120 --> 0:03:37.720
<v Speaker 2>they will take a second look at the case and

0:03:37.880 --> 0:03:42.800
<v Speaker 2>realize that this transaction is core tech, no big tech.

0:03:43.400 --> 0:03:47.560
<v Speaker 2>Remember that both Juniper Networks and HP powers a lot

0:03:47.640 --> 0:03:51.720
<v Speaker 2>of the United States infrastructure in the Department of Defense,

0:03:52.120 --> 0:03:57.840
<v Speaker 2>Department of Energy, and many other administrations across the government.

0:03:58.360 --> 0:04:01.560
<v Speaker 2>And so we're hopeful that when the administration is in charge,

0:04:01.600 --> 0:04:03.720
<v Speaker 2>they're going to look at this and take a second

0:04:03.720 --> 0:04:07.680
<v Speaker 2>look and realize this is aligned perfectly with the agenda

0:04:07.720 --> 0:04:11.480
<v Speaker 2>that the President has America First, building the United States.

0:04:11.920 --> 0:04:15.240
<v Speaker 2>Let's remind yourself a lot of the equipment that HP

0:04:15.920 --> 0:04:19.200
<v Speaker 2>produces today for the United State governments building the United

0:04:19.240 --> 0:04:23.200
<v Speaker 2>States and also outside the United States to compete with China.

0:04:23.600 --> 0:04:25.960
<v Speaker 2>The reason why the market looks the way it looks

0:04:26.000 --> 0:04:29.240
<v Speaker 2>in the United States, which is eight vendors, and this

0:04:29.360 --> 0:04:33.960
<v Speaker 2>is data from the industry analysts, which we provided obviously

0:04:34.000 --> 0:04:37.400
<v Speaker 2>tremendous amount of documentation, is because Worldwide is not allowed

0:04:37.440 --> 0:04:39.159
<v Speaker 2>to play in the United States, but when you go

0:04:39.160 --> 0:04:42.200
<v Speaker 2>outside the United States, they're actually nine menders.

0:04:42.800 --> 0:04:45.520
<v Speaker 1>It does feel like China continues to be the bogeyman

0:04:45.960 --> 0:04:47.640
<v Speaker 1>that a lot of companies are going to turn on

0:04:47.720 --> 0:04:50.640
<v Speaker 1>to try and get things through. And ultimately I put

0:04:50.680 --> 0:04:53.520
<v Speaker 1>to you that James McHenry, who's the acting Attorneys General

0:04:53.520 --> 0:04:56.040
<v Speaker 1>at the moment in the US, probably want to pursue

0:04:56.040 --> 0:04:57.760
<v Speaker 1>this and as it got some sort of sign off

0:04:57.760 --> 0:05:03.520
<v Speaker 1>from the new administration, more pro business administration. So do

0:05:03.600 --> 0:05:05.479
<v Speaker 1>you think really this is going to land any differently

0:05:05.480 --> 0:05:06.120
<v Speaker 1>with Hamboni.

0:05:07.640 --> 0:05:11.560
<v Speaker 2>We don't know, Karen. I will not speak related to that.

0:05:12.120 --> 0:05:14.479
<v Speaker 2>Excuse me for my voice. I will not speculate in that.

0:05:15.520 --> 0:05:18.040
<v Speaker 2>You know, we have dealt with the Department of Energy

0:05:18.400 --> 0:05:23.600
<v Speaker 2>Anti Trust Division. We were very collaborative, constructive throughout the process,

0:05:24.240 --> 0:05:26.679
<v Speaker 2>and we hope that the new administration one is in charge,

0:05:26.720 --> 0:05:28.760
<v Speaker 2>they're going to look at this and they will bring

0:05:28.839 --> 0:05:31.360
<v Speaker 2>us back at the table. Otherwise, you know, we will

0:05:31.400 --> 0:05:35.000
<v Speaker 2>pursue the actions through the court. They were the ones

0:05:35.240 --> 0:05:39.240
<v Speaker 2>decided to file the lawsuit to block the transaction, and

0:05:39.279 --> 0:05:42.400
<v Speaker 2>we believe we have the right to defend ourselves there

0:05:43.240 --> 0:05:46.159
<v Speaker 2>and we believe that we can prevail through the just

0:05:46.240 --> 0:05:49.400
<v Speaker 2>the anti trust aspect of the case. And then in

0:05:49.400 --> 0:05:52.640
<v Speaker 2>addition to that, we hope that also the national security

0:05:53.200 --> 0:05:55.560
<v Speaker 2>aspects of this are considered as well.

0:05:56.000 --> 0:05:58.680
<v Speaker 3>Hpe CEO Antonio Neri, thank you.