Wall Street Slams Brocade (BRCD) on Foundry (FDRY) Buyout
Tweet
Share
E-mailGet Alerts BRCD Hot Sheet
Join SI Premium – FREE
Investors in Brocade (Nasdaq: BRCD) are not cheering news the company will acquire Foundry Networks (Nasdaq: FDRY), sending the stock down 19% today on the news.
After the close, Brocade announced plans to acquire Foundry in a $3 billion deal. Brocade will pay a combination of $18.50 of cash plus 0.0907 shares of Brocade common stock in exchange for each share of Foundry common stock.
Wall Street was caught off guard by the news and is punishing Brocade shares today. Some think the 40% premium Brocade paid was too hefty.
After the close, Brocade announced plans to acquire Foundry in a $3 billion deal. Brocade will pay a combination of $18.50 of cash plus 0.0907 shares of Brocade common stock in exchange for each share of Foundry common stock.
Wall Street was caught off guard by the news and is punishing Brocade shares today. Some think the 40% premium Brocade paid was too hefty.
You May Also Be Interested In
- Nscale targets up to $3B in US IPO as soon as September - Bloomberg
- Jannik Sinner says he will not compete at US Open due to injury
- New York Fed raises Q3 2026 GDP forecast to 2.3%
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
