Broadcom: Sees No Reason For Change To Emulex Bid
18 Maio 2009 - 3:58PM
Dow Jones News
Broadcom Corp. (BRCM) Chief Financial Officer Eric Brandt said
without further information about Emulex Corp.'s (ELX) potential
future business, there is no reason for Broadcom to change its
opinion on the value of the company.
Speaking at an industry conference, Brandt said Broadcom had no
knowledge of Emulex's future business based on what Emulex has said
are as yet undisclosed design wins for its products.
"Absent that information, it's very difficult for us to make any
change in valuation assumptions," he said.
Emulex has consistently said Broadcom's bid undervalues the
company, and that Broadcom is aware that Emulex has secured future
business that has not yet been publicly disclosed.
Emulex hasn't made these design wins public, citing
confidentiality agreements with customers.
"Hopefully, somewhere along the way we can get to the point
where Emulex is willing to share that information," said
Brandt.
Last week, Emulex said its board of directors unanimously
recommended that shareholders reject a $764 million tender offer
from Broadcom.
Broadcom shares were recently up 3.7% to $21.60. Emulex shares
were up 6 cents, or 0.6%, to $10.72.
-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com