Investors didn? bat an eye at Emulex Corp.’s latest letter to stockholders on Tuesday.
The Costa Mesa-based company once again urged shareholders to reject any communications from Broadcom Corp. related to its hostile $764 million takeover bid for the maker of electronics for data storage networks.
In a seven-page letter, Emulex Chief Executive Jim McCluney encouraged shareholders not to accept any communications from the Irvine-based chipmaker, which is attempting to take its offer around Emulex? board.
The two companies have traded barbs in the public eye in the past two weeks over a rivalry for customers for a new technology that promises to bring the speed of specialized data networks to everyday networks of servers and desktop computers.
Emulex? McCluney has been touting the company? design wins as the main reason for Broadcom? aggressive move for a buyout.
Broadcom has taken digs at Emulex? projections for future sales growth for the new technology and pointed out its poor performance in recent quarters.
Emulex fired back in a letter Tuesday.
It issued a point-by-point rebuttal of Broadcom? assertions that Emulex has failed to meet its own outlook, has lost market share to competitors and has been unable to generate revenue from design wins.
The latest letter seeks to ?orrect numerous inaccurate statements made by Broadcom as part of its campaign to mislead Emulex stockholders,?the company said.
?nstead of acknowledging the difficult reality it faces regarding its inability to compete effectively in converged networking, Broadcom has made misleading statements in an attempt to disparage (Emulex) and deceive you,?McCluney said. ?roadcom is simply attempting to cloud the facts?e have consistently converted design wins into both revenue and market share.?p>Emulex? board rejected Broadcom? advances for the third time on May 15.
That’s ten days after Broadcom went around Emulex? directors and went directly to its shareholders with the offer.
Emulex? board has repeatedly characterized the deal as ?rossly inadequate?and ?pportunistic.?
Broadcom first approached Emulex in December and went public with its offer on April 21.
Both Broadcom? and Emulex? shares were roughly flat in early afternoon trading.
Broadcom had a recent market value of $11 billion. Emulex had a market value of about $900 million.
