Jim Cramer can't get enough of tech. So, in another play to look beyond bellwethers like
Research in Motion
, Cramer talked up his latest tech move on Friday's "Mad Money":
The company is known for making chips for broadband and wireless systems. Already the leader in ethernet, it derives only 5% of its revenues come from wireless, leaving a lot of growth potential. Cramer thinks the company has a lot of coming market growth because of its combination chips -- those that bring together multiple technologies like wi-fi, radio and Bluetooth.
Yet it's Broadcom's attempts to takeover
that have garnered the biggest headlines in recent weeks. Broadcom offered $9.25 per share, or $764 million. Emulex rebuffed the offer, calling the price too low and telling shareholders to reject the tender.
The two companies are now locked in one of those heated hostile tender fights of old, and things are getting personal: Emulex filed a lawsuit seeking an injunction against the tender by questioning Broadcom's business practices.
Emulex dipped into some of Broadcom's more tabloidy headlines of recent years, referencing the company's storied stock options backdating scandal, along with the securities and drug- related charges facing co-founder and former CEO Henry Nicholas. (Among other things, Emulex alleges that Nicholas and others "engaged in drug trafficking, money laundering, multi-million dollar payoffs, death threats to silence potential witnesses,
A Broadcom spokesperson said that "Emulex shareholders deserve better than mudslinging and scotched-each tactics designed to block shareholders from their ability to accept our offer." After only tendering around 2.3 million shares last week, Broadcom extended its deadline to June 17th.
Still, Cramer said the buyout will probably happen. Because despite the mudslinging, all of this ultimately comes down to the one thing it always comes down to: price.
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