Wall Street Slams Brocade (BRCD) on Foundry (FDRY) Buyout
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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.
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