Foundry Postpones Vote on Brocade Deal; Stock Plunges

October 24, 2008 at 5:11 pm PT

Foundry Networks (FDRY) shares have dropped sharply after the company announced that it has postponed the special holders meeting that had been schedule for today to vote on its proposed acquisition by Brocade (BRCD) until Wednesday, Oct. 29, at 4 p.m. Pacific time.

The company did not explain why the meeting has been pushed back, but investors obvious smell a problem with the deal. Brocade has agreed to acquire Foundry for $19.25 a share in cash.

Late yesterday, Foundry posted Q3 revenue of $165.9 million, up from $159.5 million a year ago and $160.7 million in Q2. GAAP profits were 12 cents a share, versus 18 cents a year ago and 12 cents in Q2. Excluding special items, the company earned 19 cents a share in the quarter.

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Tagged with: Barrons, Brocade, Eric Savitz, Foundry Networks, frontpage, Tech Trader Daily

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