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.

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