SAN FRANCISCOEmulex Corp.'s board of directors has unanimously rejected a Broadcom Corp. bid to acquire the company for $9.25 per share, or about $764 million in cash, Emulex said Monday (May 4).
The Emulex board determined that the Broadcom proposal significantly undervalues Emulex and is not in the best interest of company stockholders, the firm said.
In a letter to Broadcom, the Emulex board said that Broadcom's unsolicited proposal is opportunistic given that Broadcom is "aware of significant new unannounced design wins that Emulex has secured with tier-one OEMs, at the expense of Broadcom and other competitors," Emulex (Costa Mesa, Calif.) said.
Broadcom's bid is "an opportunistic attempt to take advantage of Emulex's depressed stock price due to unprecedented macroeconomic conditions" and is about 37 percent below Emules' 52-week high of $14.74 per share, said the letter, addressed from Paul Folino, Emulex executive chairman, to the Broadcom board of directors and Scott McGregor, Broadcom CEO.
On April 21 Broadcom made an unsolicited bid to acquire storage-equipment maker Emulex for $9.25 per share in cash or $764 million.