Sept 5 (Reuters) - Attorneys general from Colorado and
19 other states on Friday called for a court to consider
rejecting a U.S. Department of Justice's settlement allowing
Hewlett-Packard Enterprise ( HPE ) to acquire Juniper Networks
for $14 billion.
The letter from the Democratic attorneys general is the
latest development over the DOJ's decision to drop its attempt
to block the merger, which a former DOJ official has said was
influenced by politically connected lobbyists.
"If, upon exposing the settlement to sunlight, the evidence
establishes that it was the product of undue influence, then the
court should reject it as against the public interest," Colorado
Attorney General Phil Weiser wrote.
Shortly after Trump took office in January, the Justice
Department sued to block the deal, alleging it would stifle
competition and lead to only two companies - Cisco Systems ( CSCO )
and HP Enterprise - controlling more than 70% of the
U.S. market for networking equipment.
Ahead of a scheduled trial in San Jose, California, the DOJ
agreed to drop its claims in June, in exchange for HP Enterprise
agreeing to license some of Juniper's AI technology to
competitors and sell off a unit that caters to small and
mid-sized businesses.
A month later, two of the DOJ antitrust division officials who
signed off on the deal were fired. Sources described the move as
retaliation against Gail Slater, head of the antitrust division,
for pushing back on orders from DOJ leadership to settle the
case.
Roger Alford, one of the fired officials, said afterwards in
a speech that two of Attorney General Pam Bondi's deputies
perverted justice and acted inconsistently with the rule of law
in connection with the settlement.
The court should hear testimony from Alford along with DOJ
officials and consultants who represented HP Enterprise, the
states said.
(Reporting by Jody Godoy in New York; Editing by Chizu Nomiyama
)