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 The game of cat and mouse, the war of words -- whatever you want to call it -- continues in Broadcom Corp.'s (NASDAQ:BRCM) pursuit of Emulex Corp. (NYSE:ELX). In a Securities and Exchange Commission filing Tuesday, Southern California chipmaker Broadcom disclosed an e-mail exchange between its president and CEO Scott McGregor and Emulex president and CEO Jim McCluney in which, if you look at it in the right light, the Broadcom chief signaled the potential to up his company's $764 million, $9.25 per share bid.In an e-mail Monday, McGregor wrote that if Emulex would only share its "perspective and information," Broadcom might take a "different perspective" on transaction terms. "If Emulex can justify a valuation that is not ascertainable from public information, we would consider it," he wrote. Of course, that's a big "if." The e-mail responded to an earlier note from McCluney, who essentially said there was no way that Emulex was about to hand over sensitive nonpublic information to a rival like Broadcom. "We fail to see how it would be in the interest of Emulex stockholders to share such information with Broadcom based on the facts you have made public to date, including an offer that has been unanimously deemed by the Emulex board to be grossly inadequate," McCluney wrote in a June 5 e-mail to McGregor. The SEC filing also asked Emulex shareholders to approve a company bylaw amendment that would enable a special meeting to vote on the Broadcom bid and open the door for Broadcom to remove Emulex's board. Emulex responded Tuesday with a move that seemed to be aimed at Broadcom's contention that the company isn't giving its shareholders a chance to speak its mind. It announced that it has scheduled its annual shareholder meeting for Nov. 19. McCluney said in a press release: "Broadcom has erroneously suggested that we would not hold Emulex's annual meeting until 2010 and that their consent solicitation provides the only viable forum for stock holders to express their views. With our annual meeting now scheduled, we believe it is clear that Broadcom's consent solicitation is nothing more than an opportunistic attempt to gain leverage for themselves and further their grossly inadequate offer." At press time, Broadcom hadn't responded, but it's a pretty safe bet that it will. - Olaf de Senerpont Domis
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