Feeds

Broadcom turns away after Emulex rejects it again

Gets coat, wonders what to buy now

Application security programs and practises

Emulex has looked at Broadcom's increased offer to take it over, sniffed, and said it undervalues the company again. Broadcom is dropping its bid.

It's the same Emulex response as before, pretty much. The bid undervalues Emulex' long-term prospects and it's not in the best interests of Emulex' shareholders. Executive chairman Paul Folino said: "We would of course give full consideration to a bona fide offer from any party that reflects the full value of the Company."

Broadcom raised its bid from $9.25/share to $11.00/share - meaning spending an additional $148m on its original $764m bid - and it's not a bona fide offer? Strewth. Bona fide means good faith, by the way, and refers to a person or organisation being in or having a mental and moral state of honesty and conviction.

Broadcom wanted to take over Emulex for its line of Fibre Channel over Ethernet (FCoE) Converged Network Adapters (CNAs), technology which Broadcom could use in the Ethernet chips it makes and sells. But Emulex does not want to converge with Broadcom.

Emulex has also released its fiscal 2009 results and is bragging about four new tier 1 OEM design wins, as if to say, 'see, we can do it successfully on our own.' Two of the four relate to the CNAs, which is a relief for Emulex. Getting HBA design wins is old hat now.

Broadcom has consistently disparaged Emulex's go-it-alone growth prospects. Jim McCluney, Emulex' president and CEO, said: "These new design wins further validate our projections of $600m in revenue ... in fiscal year 2012." Take that, Broadcom.

Emulex expects to report revenues of $78m - $79m million for its fourth fiscal 2009 quarter, which is towards the upper end range it hoped for back in April. That would bring full fiscal 2009 revenues to $377m - $378m, which is about $110m down on the previous year's $488.3m income. It's quite a long way short of $600m.

Broadcom has decided to walk away and will allow its previously announced tender offer for Emulex stock to expire at midnight Eastern Time on July 14, 2009. It will not accept for payment any shares that have been tendered and will return those shares as promptly as practicable after the tender offer expires. It will now look elsewhere for acquisition possibilities.

Game, set and match to Emulex. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
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
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.