Brocade Shares Jump On IBM Takeover Talk - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Cloud Storage

Brocade Shares Jump On IBM Takeover Talk

Report indicates networking gear vendor may follow Netezza on Big Blue's acquisition list.

Shares of Brocade were up almost 10% in late afternoon trading Wednesday following a report that IBM is eyeing the networking gear manufacturer as a possible takeover target.

Brocade shares were up 9.96%, to $6.21, in the final hour of trading. At one point during the day the shares were up as much as 13%. The spike followed a Barron's report that said IBM chief executive officer Sam Palmisano was interested in the company.

Acquiring Brocade, however, would be a departure for Palmisano, who over the past several years has divested hardware units while beefing up Big Blue's portfolio of business software products. But Palmisano earlier this week showed he's not entirely averse to hardware, as IBM announced a deal to buy out business analytics appliance maker Netezza for $1.7 billion, or $27 per share.

Netezza shares were trading above $27 Wednesday on speculation that other vendors, such as Hewlett-Packard or Oracle, might enter the bidding for the company.

Some analysts and shareholders feel IBM's offer for Netezza is too conservative. Netezza investor Anthony Kolt filed suit against Netezza's board Wednesday in Delaware Chancery Court. "Netezza's directors have not acted in a manner that is designed to obtain the highest price reasonably available to shareholders," Kolt said in his complaint.

The suit called IBM's offer of $27 per share "an exceptionally low price for Netezza."

IBM has said it plans to spend about $20 billion on acquisitions during the next five years. Under Palmisano, the company has already spent $20 billion on takeovers in roughly 100 deals. IBM shares were up .17%, to $132.31.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll