United Business Media EE Times


Search

HOMEMARKET INTELLIGENCE UNITFORUMSDESIGNNEW PRODUCTSCAREERSBLOGSCONTACTEVENTSSIGN UP!RSSMost Popular contentTrusted Sources

 

Broadcom pushes ahead with $764 million Emulex bid
Print this article Email this article Reprints RSS Digital Edition

EE Times


SAN FRANCISCO—Broadcom Corp. said Tuesday (May 5) that its wholly owned subsidiary, Fiji Acquisition Corp., has commenced a $764 million tender offer for all outstanding shares of Emulex Corp., one day after Emulex's board rejected the offer as too low.

Broadcom (Irvine, Calif.) said it filed a preliminary consent solicitation statement to amend Emulex's bylaws to allow stockholders to call a special meeting.

Under the terms of the offer, Emulex stockholders would receive $9.25 net per share in cash—less any applicable withholding taxes and without interest, Broadcom said.

Broadcom said the offer price represents a 62 percent premium to Emulex's average stock closing price for the 30 trading days prior to the offer to acquire the company on April 21.

On Monday, Emulex said its board of directors unanimously rejected the $764 million offer from Broadcom, saying the board determined that the proposal significantly undervalues Emulex and is not in the best interest of company stockholders.

Broadcom's push to acquire Emulex (Costa Mesa, Calif.) is seen as a move to bolster the company's prospects at a time when data centers are trying to save money by consolidating today's separate network and storage traffic over future merged Fibre Channel over Ethernet networks, and system makers are trying to save costs by buying networking boards with a complete software stack.

Broadcom is the leader in the market for Ethernet chips for servers at the Gbit generation, but it has no shipping Fibre Channel chips or software or board-level products.

In a statement Tuesday, Scott McGregor, Broadcom president and CEO, said Broadcom was disappointed that Emulex's board rejected his company's proposal and that the company would prefer a negotiated settlement with Emulex rather than pursue a hostile takeover.

"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," McGregor said. "This intransigence could cause needless delay in efforts to combine our two companies, leading to further deterioration of Emulex's market share and stockholder value."

The Emulex board has taken steps, including the adoption of a "poison pill" and creation of bylaw amendments, to block a possible takeover, McGregor said.

Shares of Emulex closed at $10.37 in Nasdaq trading Monday and were trading at $10.75 in morning trading Tuesday following Broadcom's announcement of the commencement of the tender offer.



Related Links:

  • Emulex board rejects Broadcom bid
  • Cost drives Broadcom's Emulex bid
  • Emulex posts loss amid revenue slump
  • Broadcom makes unsolicited bid to buy Emulex



  •   Free Subscription to EE Times
    First Name Last Name
    Company Name Title
    Email address
      Click here for your Free Subscription to EETimes Europe
     
    CAREER CENTER
    Looking for a new job?
    SEARCH JOBS
    SPONSOR

    RECENT JOB POSTINGS
    CAREER NEWS
    DoD Recognizes University Scientists For Basic Research
    Annual awards to university faculty to conduct next-generation research projects were announced this week by the Defense Department.

    For more great jobs, career related news, features and services, please visit EETimes' Career Center.



    All White Papers »   

      Around Silicon Strategies

    10 emerging technologies to watch: EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders. More...

    Hot applications in 2010: We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues. More...

    Top 25 predictions for semis in 2010: 2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010. More...

    Seven things to fix in 2010: The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year? More...

    '09 moves that are shaping the future: This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010. More...

    10 CEOs out in 2009: It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year. More...

    Notable women in microelectronics: There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis. More...

    EE Times updates Silicon 60: Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching. More...

     
    Education and
    Learning


    Learn Now:












    Home | About | Editorial Calendar | Feedback | Subscriptions | Newsletter | Media Kit | Contact | Reprints|  RSS|   Digital|  Mobile
    Network Websites
    International
    Network Features




    All materials on this site Copyright © 2010 TechInsights, a Division of United Business Media LLC All rights reserved.
    Privacy Statement | Terms of Service | About