Tuesday, April 21, 2009

Broadcom Looks To Acquire Emulex In Hostile Bid

Irvine-based Broadcom said this morning that it is offering to acquire another large, Orange County electronics manufacturer, Emulex Corporation, for approximately $764M in cash. Broadcom, which is a manufacturer of high speed networking and other semiconductors, said it was offering $9.25 per share in cash, for Costa Mesa-based Emulex, which makes storage area networking components, semiconductors, and related products. Broadcom said in a statement that it believes a combined company will help create "significant shareholder value" for both companies. The cash offer for Emulex is a 62 percent premium to Emulex's 30-day average price per share. Broadcom said it would fund the purchase out of its $2.0 billion warchest of cash and securities, and would not finance the offer. According to Broadcom, the hostile bid for Emulex came after the Emulex board of directors refused to meet with Broadcom about an acquisition in January.

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