Orange County Business Journal

N.Y. Hedge Fund Becomes Emulex’s Largest Investor

Chris Casacchia Friday, December 14, 2012

A New York hedge fund with a history of high-profile sales and acquisitions in the technology sector has become Emulex Corp.’s largest investor.

Elliott Management Corp. boosted its stake in the Costa Mesa-based networking equipment maker past 11%, taking an additional 1.3% stake in the company earlier this month, according to a regulatory filing circulated Thursday.

An Emulex spokesperson declined to comment on the investment.

In March 2010, Elliott made an unsolicited bid to acquire Provo, Utah-based Novell Inc. for $2 billion after acquiring an 8.5% stake in the company.

Novell was acquired in a $2.2 billion deal eight months later. Elliott was one of its largest investors at the time of the sale.

Elliott this year pressed Houston-based BMC Software Inc. into considering a possible sale, which resulted in a $1 billion stock repurchase in October.

Elliott had an 8.1% stake in BMC through September, according to regulatory filings.

Emulex has been a takeover target in the past.

Irvine-based chipmaker Broadcom tried to buy Emulex in 2009, but its hostile bid was rejected.

Investors pushed Emulex shares up more than 2.4% in afternoon trading Friday for a market value of about $605.1 million.