Things are getting just a little more testy in Broadcom Corp.'s (NASDAQ:BRCM) hostile pursuit of networking chipmaker Emulex Corp. (NASDAQ:ELX).
Emulex put together a new investor presentation (the PDF is available
here) that projects the company's financial performance through its 2012 fiscal year. The company predicted that the converged networking market on which it focuses presents a revenue opportunity of $150 million or more within four years. It also said it expects to post overall revenue of $600 million or more in its fiscal 2012, which would represent a 23% increase over its 2008 revenue of $488 million.
Broadcom, which announced its $764 million, $9.25 per share hostile tender offer May 5 (The Deal Pipeline subscribers can read more about the offer
here), didn't wait too long to issue a statement panning the projections.
Broadcom said, according to
this filing:
"After refusing to engage in constructive discussions about Broadcom's all-cash proposal,
which would deliver substantial, certain and immediate value to Emulex shareholders, the Emulex
Board has suddenly produced a set of new, rosy, 'hockey stick' projections which may or may not
become reality sometime in 2012. We encourage Emulex shareholders to evaluate these forecasts in
light of Emulex's disappointing history of missing forecasts and its recent failure to grow either
revenue or market share."Emulex has
twice rejected Broadcom's advances. It called the chipmaker's initial offer,
unveiled April 21, "grossly inadequate," and reiterated its opposition on May 15 after Broadcom launched its tender offer.
- Olaf de Senerpont Domis
Continue reading below
