Monday, May 4, 2009

Emulex Board Unanimously Rejects Unsolicited Proposal From Broadcom

COSTA MESA, Calif., May 4, 2009 (GLOBE NEWSWIRE) -- Emulex Corporation (NYSE:ELX) today announced that its Board of Directors, with the assistance of its financial and legal advisors, has completed its evaluation of the unsolicited, non-binding proposal received on April 21, 2009 from Broadcom Corporation (Nasdaq:BRCM) to acquire Emulex for $9.25 per share in cash and has unanimously determined that the Broadcom proposal significantly undervalues Emulex and is not in the best interest of Emulex stockholders.

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.