Emulex Rejects Increased Broadcom Bid, Sees 4Q At High End

   DOW JONES NEWSWIRES 
 

Emulex Inc. (ELX) Thursday rejected Broadcom Corp.'s (BRCM) increased $912 million takeover bid as the company said its fiscal fourth-quarter results came in at the high end of its April projections, citing strong operational performance.

Emulex shares slid 13% premarket to $8.40.

Chip maker Broadcom has been pursuing a takeover of Emulex for some time, raising its bid 19% last month $11 a share. It also dropped a lawsuit against Emuluex and ended an attempt to replace its board.

Emulex said Thursday its board has concluded the new offer "significantly undervalues Emulex's long-term prospects."

Meanwhile, the maker of computer-data-center technology sees results at the high end of an April forecast that was below analysts' then-expectations. That view was earnings, excluding items, of 1 cent to 5 cents a share on revenue of $73 million to $80 million.

The earnings estimate excludes a host of costs including expenses related to the Broadcom bid. Including the costs, Emulex will report a loss for the quarter ended June 28.

Broadcom shares were inactive premarket. They closed Wednesday at $23.35.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]