Broadcom Offers $764 Million In Cash To Buy Emulex
May 05 2009 - 10:27AM
Dow Jones News
Having been rebuffed by Emulex Corp.'s (ELX) board, Broadcom
Corp. (BRCM) on Tuesday took its $764 million cash offer to buy the
company directly to shareholders.
The offer - made through Broadcom's Fiji Acquisition Corp. unit
- is the same $9.25-a-share bid that Emulex's directors rejected on
Monday, claiming it was a lowball offer.
A spokesman for Emulex wasn't immediately available for
comment.
"The Emulex board's response on Monday and its continued
unwillingness to engage in discussions with Broadcom are clearly
not in the best interests of either its stockholders or its
customers," Broadcom Chief Executive Scott McGregor said in a
statement.
Emulex shares rose 1.1% to $10.86, while Broadcom shares fell 2%
to $23.47.
A merger would combine Emulex, which makes networking technology
and software that connect servers and data centers, with Broadcom,
which makes semiconductors for various devices, including set-top
boxes and cellphones. Broadcom would be able to sell Emulex's
technology through it sales channel.
The tender offer for the shares is scheduled to expire at
midnight EDT on June 3, Broadcom said.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020;
roger.cheng@dowjones.com