Storage Soup

Oct 30 2008   8:06AM GMT

Brocade gets discount on Foundry

Dave Raffo Dave Raffo Profile: Dave Raffo

 When Foundry Networks delayed its shareholders meeting last week to vote on the proposed Brocade deal, there was speculation that A) Brocade wanted to renegotiate the price, or B) it had problems raising $400 million in high-yield bonds to help finance the deal.

Turns out the likely answer was C) both. It’s now clear Brocade did want to renegotiate, and the two companies said Wednesday night they agreed to reduce the price. The new price – $16.50 per share – comes to a total of $2.6 billion. That just happens to be $400 million less than the original purchase price of $19.25 or $3 billion. Now Brocade doesn’t have to come up with the extra financing.

Foundry shareholders are now scheduled to vote on the deal Nov. 7.

 Comment on this Post

 
There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to: