Broadcom launches unsolicited bid for Emulex
IRVINE, Calif. (AP) – Chipmaker Broadcom Corp. took its $764 million unsolicited takeover bid for Emulex Corp. directly to shareholders Tuesday.
The Irvine, Calif., company is offering $9.25 a share, a bid Emulex rejected Monday as too low.
In a statement Tuesday, Broadcom CEO Scott McGregor said, "We are disappointed by Emulex's rejection of Broadcom's proposal, which would deliver substantial, immediate and highly certain value to Emulex's stockholders."
Broadcom said it has also filed a request with the U.S. Securities and Exchange Commission asking stockholders for permission to amend Emulex's bylaws to allow a special stockholder meeting.
A call to an Emulex spokeswoman was not immediately returned Tuesday.
Broadcom has said it approached Emulex, a Costa Mesa, Calif.-based network equipment maker, about a deal last year.
But Emulex cut off talks in January and shortly after adopted a provision known as a "poison pill," a bylaw designed to thwart takeovers. Under it, shareholders are allowed to increase their stakes if any group or individual buys up more than 15 percent of outstanding shares.
Emulex shares were up 13 cents at morning trading Tuesday. Broadcom shares fell 17 cents to $23.77.