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Network gear maker Emulex Corp. is rejecting Broadcom Corp.'s sweetened takeover offer of $11 per share, saying the $912 million bid lowballs the company's long term value.
The company also released preliminary fiscal fourth quarter results at the high end of its previous forecast.
Emulex expects adjusted earnings near at the top of a range between a penny and 5 cents per share on sales of $78 million to $79 million. Analysts expect 4 cents per share.
But the decision to reject Broadcom's offer, which was raised from $9.25 per share last month, sent Emulex shares down sharply.
The stock dropped $1.40, or 14 percent, to $8.30 in premarket trading.
Broadcom, a chip designer, saw shares rise 45 cents, or 2 percent to $23.80.
