Emulex Board Urges Holders To Reject Broadcom's Tender
May 15 2009 - 10:39AM
Dow Jones News
DOW JONES NEWSWIRES
Emulex Corp. (ELX) said its board of directors unanimously
recommended that shareholders reject a $764 million tender offer
from Broadcom Corp. (BRCM).
Emulex, which makes the networking technology used to connect
the servers and equipment in company data centers, had already
rejected the $9.25-a-share offer last week. Broadcom then launched
a tender offer for all of Emulex's outstanding shares.
Emulex reitereated Friday the offer "significantly undervalues"
its long-term prospects and doesn't adequately compensate
shareholders. The company also said the proposed takeover was
opportunistic because of some design wins it has had in recent
months.
Emulex's shares were recently up 0.3% at $10.60 and Broadcom's
were down 0.5% at $20.88.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com