Network chip maker Emulex (ELX) on Monday rejected a takeover bid from crosstown rival Broadcom, (BRCM) dismissing the $9.25-a-share offer as too low and disputing Broadcom's account of the negotiations.
Emulex is a leader in adapters and controller chips for Fibre Channel networks. The Costa Mesa, Calif., company is quickly carving out a position in an emerging sector called converged networks, which combine storage and Internet networking in one system, saving customers money.
Broadcom's April 21 bid, worth about $764 million, represented a 40% premium to Emulex's closing share price of 6.61 the previous day.
Emulex shares jumped 47% on April 21 to 9.70 a share, suggesting that investors are betting on a sweetened offer from Broadcom or a higher bid from another acquirer. Shares rose nearly 4% on Monday.

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Monday, May 4, 2009
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