Redback (RBAK) Takeover Rumors Prove True, Ericsson Pays $25/Share

As had been rumored (and rejected by analysts) Redback Networks Inc. (NASDAQ: RBAK) announced a definitive agreement to be acquired by Ericsson (NASDAQ: ERIC) for $2.1 billion or $25 dollars per Redback share. The stock closed at $21.17 today.

NOTE: Today RBC analyst Mark Sue downgraded the stock, citing 'limited upside' and claiming a takeover was 'unlikely'. OUCH - BAD CALL