Broadcom Makes Hostile $9.25/Shr Bid For Emulex
Broadcom (BRCM) this morning announced an unsolicited $9.25 a share cash offer to acquire Emulex (ELX). The deal has a total value of $764 million. The offer is 40 percent above yesterday’s closing price for ELX at $6.61.
Broadcom says that it believes “its leadership in Ethernet networking, together with Emulex’s deeper expertise in Fibre Channel storage networking, will enable the combined company to accelerate the development of converged solutions for enterprise networks.”
Broadcom says it believes the deal would be accretive in 2010. The deal would be funded by cash and securities on hand.
