Rumors Surround Cisco & Brocade

Rumors on Wall Street this week have Cisco Systems Inc. (Nasdaq: CSCO) eyeing an acquisition of Brocade Communications Systems Inc. (Nasdaq: BRCD), driven by a need to prop up growth and a desire to block Brocade's $3 billion acquisition of Foundry Networks Inc. (Nasdaq: FDRY).

Some sources contacted by Light Reading seemed tepid on the theory. "I've heard buy-side rumors, people who are probably long Brocade," says one analyst, requesting anonymity.

The move would make some tactical sense. It would boost Cisco's standing in storage networking and would also keep Foundry out of Brocade's hands. Brocade is hoping its $3 billion purchase of Foundry will make it an Ethernet/storage powerhouse to rival Cisco, or at least Juniper Networks Inc. (Nasdaq: JNPR). (See Brocade Takes Aim at Cisco (& Juniper).)

Read the full story at Light Reading.

— Craig Matsumoto, West Coast Editor, Light Reading