Feeds

Broadcom could raise its Emulex bid

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

Designing a Defense for Mobile Applications

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. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.