Redback Networks, Inc. (RBAK)

[PowerPole]

News for 'RBAK'-DJ Redback-Ericsson Deal

Carries $61M Termination Fee (RBAK)

Redback Networks Inc. (RBAK) said it must pay a $61 million fee if its merger deal with Telefon AB L. M. Ericsson (ERIC) is terminated under certain conditions.

Ericsson, a Swedish mobile-phone networks maker, said on Tuesday it will buy Redback Networks in San Jose, Calif., for $2.1 billion in cash.

Redback Networks Inc. shares closed Wednesday up more than 21% at $25.66 each. They have gained more than 87% in value in the past year.

Greg Wright, Dow Jones Newswires; 202-862-3546; [e-mail]

Dow Jones Newswires

December 20, 2006 19:40 ET (00:40 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.- - 07 40 PM EST 12-20-06