ACQUISITIONS
Untitled Page
Costa Mesa's Emulex rejects Broadcom's $912 million buyout offer
In response, Broadcom ends its efforts to acquire the company.
By Kristen SchottPublished: July 09, 2009 10:28 AM
The long and bloody battle between Costa Mesa-based Emulex and Irvine-based Broadcom appears to have come to a conclusion today: Emulex rejected the chipmaker's upped $11 per share – or $912 million – takeover bid. Broadcom, in turn, said it would drop its efforts to acquire Emulex.
The move comes after months of back-and-forth debate between the two companies: Broadcom first offered $9.25 per share for a total of $764 million, which Emulex said undervalued the company.
Emulex's decision today also says Broadcom's bid "significantly undervalues Emulex's long-term prospects, is inadequate and is not in the best interests of Emulex and its stockholders."
Emulex – which specializes in converged networking solutions – further states that its financial results for its fourth fiscal quarter are at the high end of its guidance. The company expects between $78 and $79 million in revenues, up from $73 million to $80 million projected in April.
NEXT PAGE >>
Related headlines
'OC METRO Minute,' July 9: Emulex rejects Broadcom's buyout offer
Irvine's Broadcom comments on PROXY Governance report
Irvine's Broadcom fires back at Glass, Lewis & Co. recommendation
Broadcom's tender offer to Emulex extended
‘OC METRO Minute,’ June 10: Broadcom could up bid for Emulex
‘OC METRO Minute,’ June 5: Emulex fires back at Broadcom offer
Irvine's Broadcom extends tender offer for Emulex stock
Irvine's Broadcom subsidiary makes tender offer to Emulex
‘OC METRO Minute,’ Emulex, Broadcom, continue battle
|
||||
|
The move comes after months of back-and-forth debate between the two companies: Broadcom first offered $9.25 per share for a total of $764 million, which Emulex said undervalued the company. Emulex's decision today also says Broadcom's bid "significantly undervalues Emulex's long-term prospects, is inadequate and is not in the best interests of Emulex and its stockholders." Emulex – which specializes in converged networking solutions – further states that its financial results for its fourth fiscal quarter are at the high end of its guidance. The company expects between $78 and $79 million in revenues, up from $73 million to $80 million projected in April. NEXT PAGE >> Related headlines 'OC METRO Minute,' July 9: Emulex rejects Broadcom's buyout offer Irvine's Broadcom comments on PROXY Governance report Irvine's Broadcom fires back at Glass, Lewis & Co. recommendation Broadcom's tender offer to Emulex extended ‘OC METRO Minute,’ June 10: Broadcom could up bid for Emulex ‘OC METRO Minute,’ June 5: Emulex fires back at Broadcom offer Irvine's Broadcom extends tender offer for Emulex stock Irvine's Broadcom subsidiary makes tender offer to Emulex ‘OC METRO Minute,’ Emulex, Broadcom, continue battle |
||||
