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Broadcom Seeks to Persuade Emulex’s Shareholders

Irvine-based chipmaker Broadcom Corp. took another jab at Emulex Corp. in its ongoing hostile bid to buy the Costa Mesa-based maker of electronics for data storage networks, according to a government filing.

Broadcom continued its campaign to sway Emulex shareholders to go against the board of directors?repeated recommendations and accept its $764 million all-cash offer.

In a filing with the Securities and Exchange Commission, Broadcom took a dig at Emulex? projection for future sales growth in an emerging technology that promises to bring the speed of specialized data networks to everyday networks of servers and desktop computers.

?fter refusing to engage in constructive discussions about Broadcom? all-cash proposal, which would deliver substantial, certain and immediate value to Emulex shareholders, the Emulex Board has suddenly produced a set of new, rosy, ?ockey stick?projections which may or may not become reality sometime in 2012,?Broadcom said.

Broadcom? latest barb comes after Emulex? board updated its own guidance to reflect its bullish outlook for the new technology, called fibre channel over Ethernet, that? set to take hold with customers around 2010 or 2011.

For the 12 months through June, 2012, Emulex said it expects to earn profits of roughly $120 million on revenue of more than $600 million.

Broadcom, in turn, urged Emulex? shareholders ?o evaluate these forecasts in light of Emulex? disappointing history of missing forecasts and its recent failure to grow either revenue or market share.?p>Last week, Emulex? board rejected Broadcom? advances for the third time, after Broadcom on May 5 went around Emulex? directors and went directly to its shareholders with the offer.

Emulex? board once again unanimously rejected the deal, calling it ?rossly inadequate?and ?pportunistic.?

The company again emphasized that the offer ?ignificantly undervalues Emulex? long-term prospects.?

Broadcom first approached Emulex in December and went public with its offer on April 21.

The hostile bid has made waves in Orange County? technology industry, as it involves some of the sector? best known names?roadcom? Henry Samueli and Chief Executive Scott McGregor, and Emulex? Paul Folino and Jim McCluney.

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