Feeds

Broadcom could raise its Emulex bid

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

Beginner's guide to SSL certificates

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. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.