Failing to buy Emulex, Broadcom sues
Broadcom filed a patent infringement suit against networking company Emulex on Monday, just months after abandoning a nearly year-long effort to buy the company.
Broadcom filed a patent infringement suit against networking company Emulex on Monday, just months after abandoning a nearly year-long effort to buy the company.
Network components manufacturer Emulex Corp. today announced that its board of directors had unanimously rejected Broadcom Corp.'s revised cash offer to acquire it for $11 per share and recommended that shareholders not tender their shares into the offer. Broadcom, which had already indicated this latest offer would be its last, said it is dropping all efforts to acquire Emulex.
Network components manufacturer Emulex Corp. today said its board of directors will review a new takeover bid by Broadcom Corp., which raised its offer from $US9.25 per share to $11. That would make the deal worth about $US925 million.
Broadcom wants Emulex shareholders to voice their views on Broadcom's US$764 million unsolicited offer to buy Emulex after failing repeatedly to negotiate a deal between the two companies' boards.
Broadcom this week announced new chips designed to create a low-cost 802.11n wireless LAN edge for the enterprise, without the need for separate WLAN controllers.
Emulex has once again rejected an attempt by Broadcom to take over the company, reiterating its stance that the bid undervalues the company and does not adequately compensate its shareholders.
Network components maker Emulex Corp. Monday rejected an unsolicited buyout bid by chip maker Broadcom Corp., saying the all-cash offer undervalued the company and didn't take into consideration its future earning potential in the Ethernet space.
The deal announced Sunday that settled years of patent suits between chip makers Qualcomm and Broadcom is good news for consumers as well as for the companies involved, according to industry analysts.
Instead of issuing its second-quarter earnings report on Wednesday, Qualcomm abruptly rescheduled it, citing advanced settlement discussions with rival Broadcom.
Following a rejection of efforts to purchase the company in January, Broadcom on Tuesday made an unsolicited bid to purchase Emulex for US$764 million.
Bolstered by a couple of recent legal wins, Broadcom continues to attack Qualcomm, this time with a lawsuit charging Qualcomm with patent misuse.