SiliconBeat

Foundry Networks, the maker of Ethernet networking gear that agreed in July to be bought by Brocade Communications Systems in a $2 billion deal, adjourned the shareholder meeting called today to vote on the merger until Wednesday, Oct. 29, citing “recent development related to the transaction.”

The news sent both stocks zooming, but in opposite directions. Foundry shares (Nasdaq:FDRY) plunged $4.37, or 26 percent, to $12.67. Of course, they weren’t helped much by the results the company released as well Friday that showed a xx percent drop in net profit on a 4 percent gain in sales.  And the results included $2.8 million in charges related to the Brocade acquisition.

Brocade shares (Nasdaq:BRCD), on the other hand, jumped as much as 26 percent during the trading session before closing up 24 cents, or 8 percent, at $3.09.

There was speculation that the delay may be related to some doubts about Brocade’s ability to finalize financing of the deal. “I presume they adjourned the meeting until the 29th because they wanted to see Brocade complete the financing before they vote on it,” said Erik Suppiger, an analyst at Signal Hill Capital in San Francisco to Bloomberg News. “The stocks are telling us that they are not going to get the financing done.”

Last week Brocade said last week it would offer $400 million in debt to help it finance the deal.