No Plans to sell the Company for ‘stupid money’ offers say Brocade’s CEO, Carney
Northern, WI 1/21/2013 (avauncer) - Mr. Lloyd Carney who is appointed as the Chief Executive Officer for Brocade Communications Systems, Inc.(NASDAQ:BRCD) stated that it has no intentions to sell the networking-equipment maker.
When Carney was intervened, he said that he would look into the “stupid money” offers with full responsibility following the advice of trusted accountants, after all Brocade is perfectly described as a “standalone player” and not a “short-term proposition”. Carney’s experience of selling companies played a major role to replace Mike Klayk as the CEO on Jan 14.
Before taking over as CEO for Brocade Communications Systems, Inc.(NASDAQ:BRCD), he led Xsigo Systems Inc., which was sold to Oracle Corporation(NASDAQ:ORCL). Previously, he was the CEO of Micromuse Inc., which was bought by International Business Machines Corp.(NYSE:IBM) in 2006. Brocade Communications Systems, Inc.(NASDAQ:BRCD), decided to appoint Frank Quattrone a technology –investment banker to seek buyers. The person appointed was familiar with the stuff; said in July, the best way for expanding cloud-based computing for companies like Dell Inc. and Oracle is pitching its products. When Carney attained the new post as CEO, “This is not a short-term proposition”, he said. Further he stated, “If someone shows up with stupid money, I have to listen to it. But my history is I’m not a quick-turn guy. I’ve never done that.”
He also didn’t stop himself from pointing out his experience at Xsigo and Micromuse for five and three years respectively.
Though Brocade stands out to be the attractive takeover candidate due to its strong cash flow and standard position in the market, there was no quality buyer for a period of 3 years in the past. But it was clear from the board in August to expedite its sale when the statement came regarding the resign of the present CEO Klayko, who held the position since 2005. During the publication of Carney’s interview, San Jose, California-based Brocade in New York fell as low as $5.58 which was then increased to $5.64 and remained unchanged at the close which resulted in 2.7 percent advance for the year 2012.
The shares of Brocade Communications Systems, Inc.(NASDAQ:BRCD) were at $5.64
The shares of Oracle Corporation(NASDAQ:ORCL) were up by 1.42% to close at $35.11
The shares of International Business Machines Corp.(NYSE:IBM) were up by 0.42% to close at $194.47