Feeds

Broadcom? Just say no, Emulex tells shareholders

Board dismisses 'on the cheap' acquisition attempt

Choosing a cloud hosting partner with confidence

Emulex has written to its shareholders, saying that Emulex's design wins "are now threatening Broadcom's long dominant Ethernet networking market position."

The Emulex defence to the unwanted and hostile Broadcom takeover bid has been that it grossly undervalues Emulex at its $9.25/share bid price.

Emulex has added meat to this bone. First, it has this to say about Broadcom's attempt to remove its poison pill defence: "Broadcom's hostile takeover attempt also consists of a consent solicitation that aims to ultimately remove Emulex's entire Board and appoint in its place nominees hand-picked by Broadcom. We believe these nominees, if elected, will pursue Broadcom's self-serving agenda of acquiring Emulex on-the-cheap to the detriment of Emulex's stockholders."

Secondly, Emulex is talking up its Fibre Channel over Ethernet (FCoE) and HBA prospects, saying it: "expects to double its addressable market to nearly $1.5 billion by calendar 2013. Over the past several months alone, Emulex has achieved 12 new design wins with tier-one OEMs, which prior to the Broadcom proposal were unannounced and non-public. We anticipate these 12 design wins will support the vast majority of our projected $150 million in converged networking revenues in fiscal year 2012, increasing Emulex's total revenue to $600 million."

Emulex's board thinks its design wins threaten Broadcom's core Ethernet business - indeed, many were won in competition against Broadcom - and that this is a prime reason Broadcom is trying to buy Emulex, just as much as the aim of buying in needed FCoE technology.

The Emulex board would have us understand that, instead of successful Broadcom looking to buy weak Emulex, it is a case of failing Broadcom looking for succour by buying Emulex.

Emulex stresses that it continues to gain design wins, ones with IBM for its 8Gbit/s Fibre Channel HBAs were announced today, and convert them into business revenue. However, while fellow HBA and CNA vendor QLogic has announced an IBM design win for its Converged Network Adapter today, Emulex has been unable to reveal any CNA design wins.

Emulex re-asserts that Broadcom's offer is inadequate, suggesting or implying either that an improved offer should be considered by Broadcom or that Broadcom should look elswhere for its future. ®

Remote control for virtualized desktops

More from The Register

next story
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.