Broadcom Raises Offer for Emulex to $912M

Broadcom(BRCM Quote) raised its offer for Emulex(ELX Quote) to $11 a share from $9.25, and said the $912 million bid is the best offer it intends to make for the storage technology company.

Emulex urged shareholders not to tender shares into the revised offer until its board issues a recommendation.

Broadcom said Monday its latest offer is a 66% premium to Emulex's closing price on April 20, the day before Broadcom announced its initial offer.

Broadcom also said it would drop a lawsuit in which it challenged Emulex's "poison pill" takeover defense and would stop soliciting consents from Emulex's stockholders to hold a special meeting of stockholders.

In a letter to the board of Emulex, Broadcom said it would extend, as required by law, its tender offer for 10 additional days to July 14, but would allow the offer to expire if by that time Emulex's board hasn't then indicated its support for the deal.

Shares of Emulex closed Monday at $10.88, but rose in after-hours trading to $11.18.