(Bloomberg) -- VMWare Inc. is negotiating a so-called go-shop provision into its potential takeover agreement with Broadcom Inc. that would allow it to solicit competing offers, according to people familiar with the matter. 

VMWare and Broadcom are close to announcing a cash-and-stock deal that would value VMware at around $140 a share, or about $60 billion, the people said, asking not to be identified because the matter isn’t public. An announcement is expected on Thursday before the market opens, unless talks fall apart at the last minute, they said. 

Representatives for VMWare and Broadcom couldn’t immediately be reached for comment. 

Go-shop provisions let takeover targets solicit other bids for a certain period of time, often a month or two. Sellers’ boards negotiate for them to ensure they are getting the best price, especially if the deal came about from one-on-one talks instead of an auction. The insurer Alleghany Corp. had a 25-day go-shop in its pending sale to Berkshire Hathaway Inc. 

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