Redback approves Ericsson’s acquisition

Redback Networks Inc.’s board gave L.M. Ericsson a green light to move forward with plans to buy the smaller equipment maker for about $2.1 billion, or $25 per share.
Last week, Ericsson said it would pay approximately $1.9 billion for Calif.-based Redback, saying it planned to make Redback’s multi-service edge routing technology the cornerstone of its IP routing platforms and solutions business.
Ericsson’s tender offer expires Jan. 23, 2007, and does not include financing conditions.
News of the board’s decision didn’t faze investors, as Redback’s stock traded down 2 cents at $25.03 per share, while Ericsson’s stock traded down 3 cents at $40.42 per share.