Emulex CEO: Board Is Reviewing Broadcom Bid
April 27 2009 - 6:18PM
Dow Jones News
Emulex Corp. (ELX) Chief Executive Jim McCluney said the Emulex
board of directors is reviewing the unsolicited acquisition offer
from Broadcom Corp. (BRCM), but it is premature to comment further
at this time.
"The board of directors is conducting a thorough process to
review the proposal," McCluney said during a conference call to
discuss the company's third-quarter earnings. "As such, we are not
going to discuss questions on the proposal."
Last week, Broadcom launched an unsolicited bid to acquire
Emulex for about $764 million, or $9.25 a share, a 40% premium to
Emulex's closing price before the deal was announced.
According to Broadcom, Emulex rejected earlier advances and, in
January, Emulex installed protections against hostile takeover
offers.
Emulex makes a networking technology used in computer storage
networks called fibre-channel. Analysts say the ability to sell
fibre-channel along with Broadom's ethernet products would help
Broadcom expand its footprint in networked storage.
Emulex shares were down 0.2% to $10.29 after hours.
-By Jerry A. DiColo, Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com