Feeds

Emulex says Broadcom unfit to take it over

Alleged cokehound ex-CEO allegedly still influential

Top three mobile application threats

Emulex has filed a law suit alleging that Broadcom is unfit to take it over because a still influential former Broadcom CEO faces federal drug charges.

Emulex is citing the charges in an application for an injunction to prevent the takeover.

Broadcom is trying to take over Emulex with a $9.25/share $764m offer. It wants to gain access to Fibre Channel over Ethernet (FCoE) technology which applies to server adapters (CNAs) and to Ethernet switches. The data centre market is consolidating onto Ethernet as the fundamental networking transport. Emulex is one of three Fibre Channel networking companies with FCoE technology in active development, the others being Brocade and QLogic.

The lawsuit was filed in California's Orange County Superior Court on Friday 29th May with case number 30-2009-00123829-CU-BT-CJC.

According to the Wall Street Journal, Broadcom co-founder and ex-CEO Henry T. Nicholas III faces federal drug-taking charges and sex-lair-related lawsuits. Lurid aspects of the allegations have been aired, including cocaine and Ecstasy addiction and an obsession with prostitutes.

Emulex' court filing says Nicholas is still very influential at Broadcom and was involved in hiring the current CEO, Scott McGregor, who joined Broadcom in 2005. Nicholas left Broadcom in 2003. Another Broadcom co-founder, Henry Samueli, is accused with Williams in the backdating of stock options. He has pleaded guilty and sentencing is awaited.

Emulex says Broadcom is not an honest enterprise, because it has not revealed this pertinent information. They suggest that fraud and permanent injury to Emulex may be the outcome if the takeover is successful.

The WSJ quotes a Broadcom response to this suit which talks of mud-slinging and scorched earth tactics, and the assertion that none of this is relevant to the takeover offer.

It now looks less likely that Emulex wants Broadcom to come back with a better takeover offer. Each side's senior management antipathy to the other has just been raised way beyond the level at which post-takeover co-operation is possible. This lawsuit could be considered a contested takeover ritual, and not to be considered personal at all.

On the other hand, accusing the company behind a takeover of being influenced behind the scenes by a stock options-backdating cokehound and sex addict seems to go slightly beyond the normal bounds of acceptable corporate critical behaviour. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.