BUSINESS BRIEFING / TECHNOLOGY
Times Staff and Wire Reports
Emulex Corp.’s board of directors urged its shareholders to reject Broadcom Corp.’s $764-million tender offer, calling the bid “grossly inadequate.â€
Broadcom launched its hostile bid last week after Emulex’s board formally rejected the deal. The Irvine chip maker said its offer of $9.25 a share represented a 40% premium over Emulex’s stock price April 20, the day before Broadcom announced its offer. Emulex Chief Executive Jim McCluney said in an interview that the offer amounted to $5.59 a share, because $300 million in Emulex cash would be used to finance the purchase.
He also said his Costa Mesa company has been winning customers away from Broadcom.
“The fact is, we’re deep into Broadcom’s territory,†McCluney said.
