Noting that its board of directors unanimously turned down the offer, Emulex said the Broadcom offer "significantly undervalues Emulex" and doesn't take into consideration the fact that Emulex has recently beat Broadcom and other competitors in winning tier-one OEM product contracts. Emulex makes storage networking products for Intel-based server clusters. Broadcom specializes in semiconductors for VoIP, broadband communications devices, enterprise wireless networking, and Wi-Fi integrated circuits.

In a letter Monday to Broadcom CEO Scott McGregor, Emulex board chairman Paul Folino touted Emulex products and services.

"As you are well aware, Emulex is successfully building a leadership position in the rapidly expanding network convergence market ...," Folino said in his letter. "Our leadership in network convergence enables us to expand into new product categories that have significantly increased our value to OEMs and will more than double our current addressable market."

The two companies have been in tense acquisition talks dating back to December. In Broadcom's latest offer late last month, Broadcom said an acquisition of Emulex would bring Broadcom's Ethernet offerings and Emulex's Fibre Channel storage networking products to enterprise networks.

Emulex countered in its letter to McGregor that it has been developing and successfully marketing a range of new products that includes its OneConnect Universal Converged Network Adaptor platform and OneCommand convergence management framework.

By: DocMemory
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