Emulex vs. Broadcom: Who Is Misleading Whom?

Emulex Corp. (NYSE:ELX) fired another volley in its attempt to stave off Broadcom Corp.'s (NASDAQ:BRCM) $764 million hostile takeover attempt.

In a May 26 letter to shareholders, Emulex president and CEO Jim McCluney accused Broadcom of making misleading statements aimed at "disparaging" his company. Broadcom's assertion that Emulex is being a bit too optimistic with its revenue projections and its ability to convert design wins into revenue is "a weak and disingenuous attempt to dismiss these critical wins and their potential to impact Broadcom's share in their Ethernet business," McCluney wrote.

He also accused Broadcom of misleading shareholders about Emulex's history of meeting revenue projections and its ability to compete as a standalone business.

Broadcom announced its $9.25 per share hostile tender offer May 5. Emulex has rejected Broadcom's advances, calling the chipmaker's initial offer, unveiled April 21, "grossly inadequate." It reiterated its opposition Tuesday and on May 15 after Broadcom launched its tender offer. - Olaf de Senerpont Domis