Marvell, Lumentum drop after $115 billion deal stokes investor unease

** Shares of data-infrastructure chipmaker Marvell MRVL.O hit lowest since August, last down 4.6% at $187.33

** Optical-components maker Lumentum LITE.O slips 9.5% to $760

** MRVL agrees to buy LITE in an all-stock transaction, for $115 billion including debt, in one of the biggest deals of 2026

** MRVL will pay $1,132 per share in stock, a 23.9% premium to LITE's last unaffected closing price on October 28, before deal talks were first reported

** Still, the all-stock nature of the deal exposes LITE investors to fluctuations in MRVL shares, which have lost around 27% of their value since deal talks were reported

** Concerns about AI spending have also weighed on both stocks

** Analysts at TD Cowen raise questions about how the combined entity will manage relationships with competing investors

** Brokerage says it was also looking for clarity on what the combined company can offer that MRVL and LITE could not deliver independently

** MRVL would owe LITE a $5.8 bln termination fee if its board withdraws support or it walks away for a rival bid; LITE would owe MRVL $2.9 bln in similar circumstances

** As of last close, MRVL and LITE shares more than doubled YTD