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; gregory.wright@dowjones.com
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