Broadcom Willing To Reassess Emulex Bid Price

Separately, Broadcom co-founder Henry Nicholas III faces drug charges and allegations that he conspired to backdate $2.2 billion in employee stock options. He pleaded not guilty.

Broadcom first approached Emulex for a possible acquisition in December 2008, through a phone call between McGregor and Folino. In January, Emulex restated its corporate bylaws to require 66.67 percent shareholder approval for any amendments. It also adopted a new "poison pill" provision designed to make hostile takeovers more expensive to accomplish. These bylaw changes would later become the subject of litigation between the two companies.

A formal offer for Emulex was sent in writing in April. Emulex's board rejected the offer in May. Broadcom then decided to take the offer directly to shareholders.

Shares of Costa Mesa, Calif.-based Emulex were down 2 cents to close Tuesday at $10.58 while Broadcom, based in Irvine, Calif., rose $1.43, or 5.5 percent, to finish at $27.25.