An investigation on behalf of investors of Brocade Communications Systems, Inc. (NASDAQ:BRCD) in connection with the proposed takeover was announced and NASDAQ:BRCD stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 11/08/2016 -- An investigation on behalf of investors, who currently hold shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD), was announced concerning whether the takeover of Brocade Communications Systems, Inc. by Broadcom Limited for #12.75 per share is unfair to NASDAQ:BRCD stockholders.
Investors who purchased shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD) and currently hold any of those NASDAQ:BRCD shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The investigation by a law firm concerns whether certain officers and directors of Brocade Communications Systems, Inc. breached their fiduciary duties owed to NASDAQ:BRCD investors in connection with the proposed acquisition.
On Nov. 02, 2016, Broadcom Limited (Nasdaq:AVGO) and Brocade Communications Systems, Inc. (NASDAQ:BRCD) announced that they have entered into an agreement under which Broadcom will acquire Brocade for $12.75 per share in an all-cash transaction valued at approximately $5.5 billion, plus $0.4 billion of net debt.
However, given that at least one analyst has set the high target price for NASDAQ:BRCD shares at $13.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:BRCD stockholders. More specifically, the investigation concerns whether the Brocade Communications Systems Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Brocade Communications Systems, Inc. reported that its Total Revenue rose from over $2.21 billion for the 53 weeks period that ended on November 1, 2014 to over $2.26 billion for the 52 weeks period that ended on October 31, 2015 and that its Net Income for those respective time periods increased from $237.97 million to $340.36 million.
On November 7, 2016, NASDAQ:BRCD shares closed at $12.34 per share
Those who are current investors in Brocade Communications Systems, Inc. shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com