COSTA MESA, Calif. (AP) -- Computer network gear maker Emulex Corp. said Monday it has rejected an unsolicited $764 million takeover bid from rival chipmaker Broadcom Corp.
The board of Costa Mesa-based Emulex unanimously determined Monday that the April 21 Broadcom proposal to acquire Emulex for $9.25 a share significantly undervalues the company and is not in the best interest of stockholders.
Emulex Executive Chairman Paul Folino wrote Broadcom Chief Executive Scott McGregor that the offer represents an opportunistic attempt to take advantage of prices depressed by the nation's financial meltdown.
Folino also said the board is enthusiastic about Emulex's future prospects and the long-term value of its host server and embedded storage businesses.
Broadcom spokesman Bill Blanning said the company is evaluating its options.
Broadcom had said in April that it approached Emulex about a possible deal late last year. Emulex responded in early January, saying the company was not for sale and cutting off talks, according to a letter to Emulex's board released by Broadcom.
Emulex also adopted a "poison pill" provision, which is generally intended to thwart a hostile takeover. It gives existing shareholders the right to purchase more stock if any group or individual acquire more than 15 percent of the company's outstanding shares.
Shares of Emulex rose 35 cents, or 3.4 percent, to $10.72 in afternoon trading, having changed hands at $4.53 to $14.74 in the past 52 weeks.
Broadcom's shares rose 52 cents, or 2.3 percent, to $23.58.