Monday, May 4, 2009
Emulex Rejects Broadcom Acquisition
Costa Mesa-based Emulex said this morning that it has rejected the unsolicited takeover attempt from Irvine-based Broadcom, saying the proposal "significantly undervalues" Emulex. Emulex Executive Chairman Paul Folino said the proposal was "an opportunistic attempt" by Broadcom. Among other points cited by Emulex, the firm said the offer "significantly undervalues" the firm's long-term prospects, was timed to take advantage of Emulex's "depressed" stock price, and came because Broadcom was "unique aware" of unannounced design wins that Emulex has secured with tier-one OEMs, which came at the expense of Broadcom and other competitors.