SiliconBeat

Brocade Communications dropped word into its quarterly 10-Q financial filing with the SEC today of an examination by the Internal Revenue Service of the  last two tax returns filed by Foundry Networks, whose sale to Brocade was finalized Dec. 18.

The examinations, covering both the 2007 and 2006 tax years, began earlier this month. “As the audit has just begun,” the company reported, Read the rest of this entry »

Foundry Networks said Tuesday it managed to sell its portfolio of auction rate securities, netting an estimated $38.8 million in the process. The news opened the way for a special meeting of its shareholders to be held today to allow them to, finally, vote on the proposed sale of the company to Brocade Communications Systems.

The special dividend is scheduled to be paid on the date on which the merger is completed. If it should not be completed, Foundry says it will not pay the special dividend.

We’ve posted previously about the cold feet both parties seem to have developed about the transaction that was first proposed back in July.

As corporate romances go, we’d say the bloom is off the rose of the courtship between Brocade Communications and Foundry Networks. It appears that both parties have developed at least a few cold toes about the matter.

Recall that Brocade recently lowered its offer for Foundry amid rumors that it was having a hard time lining up a secure source of funding for the deal since it was announced in July, when Brocade offered to pay $18.50 per share in cash plus a fractional share of its own stock that boosted the value of the total deal when it was announced to $19.25 per share.

The offer has since been lowered Read the rest of this entry »

Foundry Networks, which first postponed a shareholder vote to approve its proposed sale to Brocade Communications from last Friday to Wednesday, and then postponed it a second time to Nov. 7, has postponed it once again. Probably.

In a release today, Foundry said that should the two companies reach a new “definitive”
agreement, the shareholder vote would be Read the rest of this entry »

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 Read the rest of this entry »