Thursday, October 30, 2008

Brocade, Foundry Networks Reduce Acquisition Price

San Jose-based Brocade and Santa Clara-based Foundry Networks said late Wednesday that the two firms have reached an agreement to reduce the price that Brocade will pay for Foundry. According to the firms, Foundry shareholders will receive $16.50 per share in cash for each share of Foundry stock. The new terms will make the acquisition worth approximately $2.6 billion. Originally, the deal was worth $18.50 per share in cash, or approximately $3.0 billion. No reason for the change in price was given, Brocade stock--along with the rest of the market--has dropped significantly from when the offer was made in July.