Broadcom makes $764 million bid for Emulex

After an earlier snub, Broadcom Corp. (BRCM) today made an unsolicited offer to buy Emulex Corp.

After an earlier snub, Broadcom Corp. (BRCM) today made an unsolicited offer to buy Emulex Corp. (ELX) for $764 million, or $9.25 a share, in a bid that represents a 40 percent premium over Emulex's closing price of $6.61 yesterday.

Broadcom disclosed its offer after sending a letter to Emulex's board of directors. The company said it was making its proposal public because Emulex refused to continue negotiations that broke off in December.

Irvine, Calif.-based Broadcom produces semiconductors used in an array of communications products, including wireless phones, cable set-top boxes, and wired communications networks. Thirty-year-old Emulex, based in Costa Mesa, Calif., makes technology used in computer data centers.

Emulex later adopted a "poison pill" plan to thrwart a potential takeover and said in January it was not for sale, Broadcom noted. The bid was first revealed in a preliminary report by the Wall Street Journal early this morning.

In a separate release, meanwhile, Irvine, Calif.-based Broadcom reported a first-quarter loss of $91.9 million, or 19 cents a share, compared with net income of $74.3 million, or 14 cents a share, in the same quarter a year earlier.Revenue dropped 24.2% to $853.4 million.

Yet the maker of semiconductors for wireless phones and other communications equipment said orders improved near the end of the quarter, signaling a sequential increase in revenue in the current second quarter.