UPDATE 2-Broadcom extends Emulex tender again

Thu Jun 18, 2009 12:03pm EDT

Related Topics

* Broadcom extends Emulex tender offer to July 1

* Emulex shares slightly higher; Broadcom down 2.9 pct (Adds Emulex response, updates share price)

NEW YORK, June 18 (Reuters) - Broadcom Corp (BRCM.O) has again extended the deadline of its tender offer for storage technology company Emulex Corp (ELX.N), amid little sign that shareholders are warming to the $764-million hostile bid.

Broadcom pushed its deadline to July 1 for the cash offer of $9.25 a share, saying that about 2.3 million shares had been tendered by 5 p.m. on Wednesday.

That is less than 3 percent of Emulex's outstanding shares, and marginally fewer than the number of shares tendered when Broadcom last extended its deadline by two weeks on June 4.

Emulex rejected the chipmaker's bid in May and has urged shareholders to do the same, calling the offer "grossly inadequate."

"We believe stockholders agree with our board that Broadcom's offer significantly undervalues Emulex," the company said in an e-mailed statement on Thursday.

Emulex said its shareholders supported the company's stand because of the "meager" number of shares tendered and "the fact that the stock has continuously traded well above Broadcom's offer since its announcement."

Shares of Emulex were trading up eight cents at $10.69 in morning trading on the New York Stock Exchange on Thursday, roughly 60 percent higher than where they were on April 20, the day before Broadcom made its offer public.

Shares of Broadcom were trading down 2.9 percent to $25.20 on the Nasdaq. (Reporting by Franklin Paul and Anupreeta Das; Editing by Lisa Von Ahn and Tim Dobbyn) (Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net)) (To read more about our Media news, visit out MediaFile blog online at blogs.reuters.com/mediafile )

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