BROOMFIELD – Brocade Communications Inc. shareholders approved the acquisition of McData Corp., completing the combination of the world’s biggest makers of switches for data-storage networks.
The purchase, valued at $1.02 billion, was accepted by shareholders of both companies at separate meetings Thursday and is expected to close Monday, according to a joint statement. Shareholder approval came two days after the acquisition won U.S. antitrust clearance.
MORE BRIEFS
DENVER
Lender launches plan to help smaller outfits
Colorado Enterprise Fund on Thursday launched the GrowColorado Fund, a business-loan program to finance entrepreneurs and small businesses that lack resources.
CEF has received major new investments from Wells Fargo, U.S. Bank and the Colorado Housing and Finance Authority, and additional capital from the Small Business Administration. The $2 million in new funds brings CEF’s total lending capacity to more than $8 million.
GREENWOOD VILLAGE
First Data sets sights on streamlining
First Data Corp., the world’s largest processor of credit-card payments, said it plans to spend more than $100 million to streamline its U.S. technology operations in the next three years.
“While we do expect to begin in 2007, we are not in a position today to accurately estimate total cost or total savings” from the technology project, chief executive Henry “Ric” Duques told analysts Thursday.
He estimated the costs will exceed $100 million over 2 1/2 years.
TYLER, Texas
Former HP exec told to withdraw claims
A former Hewlett-Packard Co. executive was ordered to withdraw public claims in court documents that the company paid for inside information on Dell Inc. and sought to obtain his phone records improperly.
Karl Kamb, a former Hewlett- Packard vice president, made the claims Jan. 19 in federal court here. Hewlett-Packard obtained a court order Thursday to have the claims withdrawn. If Kamb wants to make the accusations, he must file them under seal so they aren’t open to the public, U.S. District Judge Michael Schneider said in a ruling.
LONDON
British Airways cancels flights due to strike
British Airways PLC is canceling all its flights to and from London’s Heathrow Airport and several more from its Gatwick terminal for two days next week because of a strike by cabin crewmembers. The shutdown includes a daily flight to Denver.
The airline said Thursday that a total of 1,300 flights to and from the London airports will be grounded during the 48-hour walkout Tuesday and Wednesday.
NORFOLK, Va.
Smithfield to move sows to bigger pens
Smithfield Foods Inc., the world’s biggest hog producer, said it will convert cramped gestation stalls at all of its 187 breeding farms to larger group pens for sows, a move hailed by animal-rights groups.
Chief executive Larry Pope said he was making the change, which will require “a significant financial commitment,” because customers believe the group pens are “more animal-friendly.” The stalls will be replaced at all sow farms owned by Smithfield’s Murphy-Brown hog-production unit over the next 10 years.
DETROIT
GM delaying reports due to need to restate
General Motors Corp., the world’s largest automaker, said it will delay fourth-quarter and 2006 results because it has to restate earlier financial reports.
The restatements involve deferred tax liabilities, hedging and other items and will be for 2002 through the third quarter of 2006, Detroit-based GM said in a statement Thursday. It said it’s also waiting on information from its former finance unit.
CHICAGO
Boeing scraps plans for wireless systems
Boeing Co., the world’s second-largest commercial-airplane maker, is scrapping plans to install wireless entertainment systems on its 787 Dreamliner because the technology wouldn’t have worked in all countries.
The cancellation of the system won’t delay the delivery of the plane next year and won’t increase costs, Boeing spokeswoman said Lori Gunter. The company discovered late last year that the frequency it sought in some countries had already been allocated to other uses.
BEIJING
China’s economy rises near No. 3 Germany’s
China’s economy surged in 2006, moving it closer to overtaking Germany as the world’s third-largest economy. Now it may have No. 2 Japan and the No. 1 U.S. in its sights, if it doesn’t succumb to the pitfalls of an overheated economy, such as soaring inflation and rampant debt.
China reported Thursday that its economy grew by 10.7 percent in 2006, according to figures issued by the government. It was the fastest growth since 1995, when the economy expanded by 10.9 percent.
