Foundry Networks determines special cash dividend following sale of auction-rate securities

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Foundry Networks, Inc. expects its conditional special cash dividend will be about $0.2349 per share now that the company has sold its portfolio of auction-rate securities for estimated net proceeds of $38.8 million.

It was previously reported that Foundry stockholders would receive the net proceeds of the sale, up to roughly $50 million, if the company successfully liquidates the portfolio prior to the completion of its merger with Brocade Communications Systems, Inc.

The dividend is payable immediately prior to the merger's closing, which is expected by the end of the year, a Foundry news release said.

As previously reported, Foundry shareholders will receive $16.50 per share under the company's amended definitive agreement with Brocade. The transaction is valued at $2.6 billion.

Foundry shareholders will vote on the merger agreement on Wednesday.

Brocade is a San Jose, Calif., network storage equipment company. Foundry, based in Santa Clara, Calif., provides network switching and routing solutions.

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