Foundry could postpone Brocade vote yet again

Foundry says Brocade vote could be delayed until December

Foundry Networks says a shareholder vote on its amended deal to be acquired by Brocade could be further delayed.

Last week, the company said its shareholders would vote on the reduced terms of the deal on November 7. That was a postponement of an earlier vote, schedule for last Friday, October 24.

Foundry's stock plunged 25 percent after that announcement.

Foundry now says that if a definitive agreement is reached with Brocade regarding the new agreement, the stockholder meeting scheduled for November 7 will be further delayed until December. The transaction would then be expected to close in the second half of December, Foundry said.

Foundry and Brocade earlier this week said they amended their agreement for Brocade to acquire the company to US$16.50 per Foundry share, or US$2.6 billion. The original terms of the deal were for Brocade to acquire Foundry for over US$19 per share, or US$3 billion.

The agreement in principle also provides that Foundry stockholders could receive the proceeds of the sale of the company's portfolio of auction rate securities, up to an amount of US$50 million, if Foundry is able to successfully liquidate its portfolio of these securities prior to the close of the acquisition.

Foundry added, however, that there can be no assurance that the securities are marketable or at what price such securities could or will be sold, or that a market for these securities exists or will exist prior to the close of the acquisition.

Tags brocadefoundry

Recommended

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?