Broadcom halts efforts to buy Emulex
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The chase is over. After Emulex rejected Broadcom’s $912 million offer, its suitor today called off the hostile buyout effort.
Broadcom Chief Executive Scott McGregor, who only two weeks ago sweetened his bid 20% from $764 million, said his Irvine network equipment company will now pursue ‘other value-creating alternatives.’ The company said it would not renew its offer when the offer expires July 14.
The announcement ends a contentious process marked by lawsuits lobbed by both Orange County companies. Broadcom initially had sued to invalidate an Emulex poison pill designed to ward off hostile takeovers. Emulex, based in Costa Mesa, countered with a lawsuit charging that the antics of former Broadcom chief executive Henry Nicholas made the company untrustworthy.
Nicholas, who is no longer involved in Irvine company he founded, is awaiting criminal prosecution on two federal indictments, one on a stock backdating charge and another alleging he had supplied narcotics to acquaintances.
-- Alex Pham
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