Feeds

Broadcom could raise its Emulex bid

We'll throw in the girls and the car, OK?

Intelligent flash storage arrays

Broadcom is dangling the carrot of a potentially raised bid in front of Emulex, but says it needs access to inside information.

Reuters reports that Broadcom CEO Scott McGregor made the offer in an email to Emulex CEO Jim McCluney.

Broadcom, an Ethernet switch supplier, is trying to take over Fibre Channel server adapter vendor Emulex with a hostile bid which, Emulex claims, grossly undervalues Emulex and comes from an untrustworthy company. The Broadcom tender offer, which closes on June 17, is for $9.25 a share and totals $764m. It had gained less than three per cent of Emulex outstanding shares and so extended the tender closure date from June 3.

Emulex has Fibre Channel Host Bus Adapter (HBA) products and is developing Fibre Channel over Ethernet (FCoE) ones that help converge general data centre networking and stirage networking onto Ethernet. The FCoE technology is the magnet for Broadcom.

In reply to the McGregor mail, McCluney said no inside information relating to Emulex's technology, financial and customer plans would be given to Broadcom. He didn't see how it would be in the best interests of Emulex shareholders for such information to be divulged.

Broadcom is seeking consent from Emulex shareholders to enable the calling of a special meeting which could force Emulex's management to change company bylaws and remove obstacles to the Broadcom bid. It would like to get this consent by the July 4 weekend so that Emulex stockholders could call a meeting before the autumn.

Emulex has scheduled an annual meeting of stockholders for November 19, a move which Broadcom has characterised as a delaying tactic. It has previously hinted that it could walk away if its bid took too long to reach a conclusion.

It is beginning to look, with this far less than overwhelming acceptance of Broadcom's tender offer, as if Emulex is going to wriggle out from under Broadcom's attempt to gobble it up. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
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
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.