Broadcom Offers $764 Million In Cash To Buy Emulex

Having been rebuffed by Emulex Corp.'s (ELX) board, Broadcom Corp. (BRCM) on Tuesday took its $764 million cash offer to buy the company directly to shareholders.

The offer - made through Broadcom's Fiji Acquisition Corp. unit - is the same $9.25-a-share bid that Emulex's directors rejected on Monday, claiming it was a lowball offer.

A spokesman for Emulex wasn't immediately available for comment.

"The Emulex board's response on Monday and its continued unwillingness to engage in discussions with Broadcom are clearly not in the best interests of either its stockholders or its customers," Broadcom Chief Executive Scott McGregor said in a statement.

Emulex shares rose 1.1% to $10.86, while Broadcom shares fell 2% to $23.47.

A merger would combine Emulex, which makes networking technology and software that connect servers and data centers, with Broadcom, which makes semiconductors for various devices, including set-top boxes and cellphones. Broadcom would be able to sell Emulex's technology through it sales channel.

The tender offer for the shares is scheduled to expire at midnight EDT on June 3, Broadcom said.

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; [e-mail]