2008年12月26日星期五

Brocade Completes $2.6 Billion Buy Of Foundry Networks

Brocade Communications Systems Inc. (BRCD) Friday completed its $2.6 billion acquisition of Foundry Networks Inc. (FDRY), uniting two Silicon Valley data- networking companies that compete with Internet-connectivity equipment maker Cisco Systems Inc. (CSCO).
The deal, which valued Foundry's shares at $16.50 each, was scaled back last month from Brocade's original agreement to pay $18.50 a share plus 0.0907 shares of its common stock for each share of Foundry stock - a total of $19.25 a share based on Brocade's closing stock price of $8.27 on the Friday before the $3 billion deal was announced.
The companies agreed to cut $400 million off the original $3 billion purchase price after investors said Brocade was paying too much for Foundry and raised concerns about the financing.
Brocade Chief Executive Mike Klayko said the deal boosts the company's portfolio of services.
Earlier this month, Proxy Governance Inc. recommended that shareholders oppose the takeover, saying the deal's lower terms raised more doubts about the merger. The proxy advisor said it had grudgingly supported the initial proposal but that the reduced deal "weakened the case" for supporting the buyout.
Brocade's shares closed Thursday at $3.44 and Foundry's closed at $16.66. Neither has seen any premarket action. Brocade's shares have plunged 59% since the deal was announced in July.

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