Broadcom raises offer for Emulex
Broadcom Corp. on Monday sweetened its offer to buy crosstown rival Emulex Corp. nearly 20% to $912 million, from its original bid of $764 million.
“This is the best offer Broadcom intends to make,” Scott McGregor, chief executive of the Irvine chip maker, wrote in a letter to Emulex Chairman Paul Folino.
McGregor noted that his latest offer for $11 a share in cash represents a 66% premium over Emulex’s closing stock price of $6.61 on April 20, the day before Broadcom announced its bid.
Emulex shares have since traded consistently above $10. They gained 26 cents to close at $10.88 on Monday before the Broadcom announcement. The stock ticked up an additional 30 cents in after-hours trading to $11.18.
Officials from Emulex, based in Costa Mesa, could not be reached for comment. The company had rejected Broadcom’s earlier proposal as inadequate. It filed a lawsuit this month in Orange County Superior Court seeking to block Broadcom’s hostile bid.
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