The Board of Directors of Emulex Corporation rejected the unsolicited acquisition proposal received on April 21, 2009 from Broadcom for $9.25 per share in cash. Emulex said the bid significantly undervalues the company.
In a letter to Broadcom, the Emulex Board of Directors stated that Broadcom’s unsolicited proposal is not in the best interests of Emulex stockholders because it:
- Significantly undervalues Emulex’s long-term prospects, particularly with respect to our opportunities in network convergence, which are more than doubling Emulex’s addressable market;
- Is opportunistic given Broadcom is aware of significant new unannounced design wins that Emulex has secured with tier-one OEMs, at the expense of Broadcom and other competitors, and their potential long-term value creation for Emulex and its stockholders;
- Is clearly timed to take advantage of Emulex’s depressed stock price during the current unprecedented macroeconomic conditions. Emulex’s stock price has traded well above the proposal price within the last twelve months.
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