Emulex Denies Broadcom Request For Confidential Information
09 Juni 2009 - 6:21PM
Dow Jones News
Emulex Corp. (ELX) earlier this week denied Broadcom Corp.'s
(BRCM) request for non-public information, which Broadcom said
might help it to decide if its current offer for Emulex could be
modified.
The exchange, made public in a Securities and Exchange
Commission filing by Broadcom on Tuesday, comes as the two
companies are locked in an increasingly bitter takeover battle.
Emulex has insisted that Broadcom's offer of $764 million, or $9.25
a share, undervalues the company, based in part on future business
that Emulex cannot yet disclose.
In an email sent Monday, Emulex Chief Executive Jim McCluney
responded to a phone conversation between him and Broadcom Chief
Executive Scott McGregor. According to McCluney, McGregor asked for
"highly competitive and sensitive information regarding our
technology," as well as details of customer plans, design wins and
financial information.
"We fail to see how it would be in the best interests of Emulex
stockholders to share such information with Broadcom," McCluney
wrote.
McGregor responded: "If Emulex can justify a valuation that is
not ascertainable from public information, we would consider
it."
Broadcom included the exchange in its definitive consent
solicitation, which asks Emulex shareholders to allow a request for
a special meeting of shareholders, where Broadcom would put forward
an alternative slate of directors.
Broadcom has extended its tender offer, originally set to expire
June 3, to June 17. Prior to the extension, Broadcom received about
2.3 million Emulex shares out of 82.9 million shares
outstanding.
Emulex again recommended that shareholders not tender their
shares or participate in the consent solicitation in a statement
released Tuesday. Emulex also said it will hold its annual
shareholder meeting Nov. 19.
Emulex shares were recently up 0.8% to $10.68, and have traded
above Broadcom's $9.25 a share bid since the offer was announced in
April.
Broadcom shares were recently up 4% to $26.86.
- By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com