Broadcom: Sees No Reason For Change To Emulex Bid

Broadcom Corp. (BRCM) Chief Financial Officer Eric Brandt said without further information about Emulex Corp.'s (ELX) potential future business, there is no reason for Broadcom to change its opinion on the value of the company.

Speaking at an industry conference, Brandt said Broadcom had no knowledge of Emulex's future business based on what Emulex has said are as yet undisclosed design wins for its products.

"Absent that information, it's very difficult for us to make any change in valuation assumptions," he said.

Emulex has consistently said Broadcom's bid undervalues the company, and that Broadcom is aware that Emulex has secured future business that has not yet been publicly disclosed.

Emulex hasn't made these design wins public, citing confidentiality agreements with customers.

"Hopefully, somewhere along the way we can get to the point where Emulex is willing to share that information," said Brandt.

Last week, Emulex said its board of directors unanimously recommended that shareholders reject a $764 million tender offer from Broadcom.

Broadcom shares were recently up 3.7% to $21.60. Emulex shares were up 6 cents, or 0.6%, to $10.72.

-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670; [e-mail]