DOW JONES NEWSWIRES
Emulex Inc. (ELX) Thursday rejected Broadcom Corp.'s (BRCM)
increased $912 million takeover bid as the company said its fiscal
fourth-quarter results came in at the high end of its April
projections, citing strong operational performance.
Emulex shares slid 13% premarket to $8.40.
Chip maker Broadcom has been pursuing a takeover of Emulex for
some time, raising its bid 19% last month $11 a share. It also
dropped a lawsuit against Emuluex and ended an attempt to replace
its board.
Emulex said Thursday its board has concluded the new offer
"significantly undervalues Emulex's long-term prospects."
Meanwhile, the maker of computer-data-center technology sees
results at the high end of an April forecast that was below
analysts' then-expectations. That view was earnings, excluding
items, of 1 cent to 5 cents a share on revenue of $73 million to
$80 million.
The earnings estimate excludes a host of costs including
expenses related to the Broadcom bid. Including the costs, Emulex
will report a loss for the quarter ended June 28.
Broadcom shares were inactive premarket. They closed Wednesday
at $23.35.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com