Foundry Networks, Brocade to amend merger agreement, lowering price

By Lisa Kerner

Charlotte, N.C., Oct. 30 - Foundry Networks, Inc. and Brocade Communications Systems, Inc. announced they have agreed in principle to amend their merger plan.

The agreement in principle gives Foundry's shareholders $16.50 of cash for each share of Foundry common stock for a total purchase price of approximately $2.6 billion, the companies said.

In addition, Foundry further adjourned its special meeting of shareholders until Nov. 7.

Brocade, a San Jose, Calif., network storage equipment company, originally agreed to acquire Foundry for $3 billion. For each share of common stock, Foundry shareholders were slated to receive $18.50 in cash and 0.0907 Brocade shares for a total value of $19.25.

Foundry is a Santa Clara, Calif.-based provider of network switching and routing.

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