Broadcom Willing To Reassess Emulex Bid Price

DEBORAH YAO

Broadcom Corp. could reassess the price of its unsolicited takeover of Emulex Corp., which had called its $764 million offer as inadequate, if given nonpublic information to justify a new bid, according to a regulatory filing made Tuesday.

In the latest salvo in a bitter takeover attempt, Broadcom Chief Executive Scott McGregor said the company's $9.25-per-share offer for Emulex was based on publicly available information.

"If Emulex can justify a valuation that is not ascertainable from public information, we would consider it," he wrote in an e-mail to Emulex CEO James McCluney that was disclosed in a filing with the Securities and Exchange Commission.

McCluney had called Broadcom's bid "opportunistic," saying the company knew Emulex has won yet-unannounced design contracts with manufacturers, beating Broadcom and other rivals.

"As you know, these design wins are kept confidential at our customers' request and do not typically begin contributing revenue for several quarters," McCluney wrote in an e-mail. "You are uniquely aware of the future value we have secured and how well positioned we are to unseat you on many other platforms in the near future."