|
|
|
30 Oct 2008
Storage vendor Brocade's proposed acquisition of Foundry Networks continues to drag on as the companies have "agreed in principle" on a $400m (£241m) reduction in price.
Foundry shareholders were scheduled to vote on the $3bn deal on 24 October but that afternoon the company issued a statement which said: "Given recent developments related to the transaction, the special meeting of stockholders scheduled to be held today has been adjourned until 29 October."
The enigmatic announcement sent Foundry's stock price into freefall as it closed more 25 per cent down on Friday. Some onlookers suggested Foundry shareholders were having doubts about storage vendor Brocade's ability to finance the deal.
Further reading
The companies issued another statement yesterday indicating they had "agreed in principle" to reduce the price of the buy-out to $2.6bn. The meeting of Foundry shareholders has also been further adjourned and will now take place on Friday, 7 November.
The two companies entered into a definitive agreement on the original deal in July and both boards of directors gave it the green light. Brocade claimed it planned to finance the acquisition through cash and committed debt financing from the Bank of America and Morgan Stanley Senior Funding.
Related articles
In this video find out about the fast-growing Chinese vendor's plans for market domination and how the channel is its route of choice
Find out what gifts Acer has in store for partners for 2012 in this exclusive roundup of its recent conference
CRN's premier networking event is back on 17 May at the Ricoh Arena
Date: Thu 17 May 2012
Channel fighters preparing to square up once more on 24 May
Date: Thu 24 May 2012
The proliferation of endpoint devices within the enterprise has highlighted the shortcomings of one of the traditional approaches to data security
This Forrester report compares the costs and benefits of legacy email and productivity software with Google Apps
Dave discovers that rozzers are seemingly living in the technology dark ages
Mark Needham, founder of distributor Widget, argues that John Browett leaves for Apple with Dixons in better shape than when he arrived
|
|
|
Do you agree?
Have your say