Broadcom still trying to woo Emulex shareholders

03.06.2009

Broadcom's renewed pressure comes after Emulex filed suit against Broadcom on Monday for unfair business practices, citing the drug-trafficking and securities-fraud indictment of Broadcom's former top executive, among other things, as proof to its shareholders that Broadcom officials can't be trusted.

Emulex has been fighting off a takeover by Broadcom since late last year, when Broadcom first approached Emulex about a deal.

Broadcom made its bid public in a letter to Emulex shareholders on April 21, following a breakdown of talks in January. Emulex's board rejected the bid, saying it undervalued the company, leading Broadcom to make its tender offer to Emulex shareholders on May 15.

Broadcom produces semiconductors used mainly in communications products, such as wireless networks, cell phones and cable set-top boxes. Emulex provides technology for connecting storage, servers and networks in data centers, working with large storage vendors such as EMC, Hewlett-Packard and IBM. Both companies operate in Orange County, California -- Emulex in Costa Mesa and Broadcom in Irvine.