Starboard Acquires 6.9% Stake in Emulex
Starboard Value LP announced that they acquired a 6.9% stake in Emulex Corp.
Starboard currently owns 6.25 million share of the California based chipmaker.
Emulex Corp (ELX) is currently seeking potential buyers.
Emulex hired investment firm Goldman Sachs Group Inc to find potential buyers for the deal. Emulex shares declined 21% since the company decline an $11 a share bid from Broadcom Corp in 2009.
The Elliot Management Corp, is Emulex's largest shareholder, owning 10% of the stocks. Elliott and Emulex have a standing agreement that prohibits Elliott from pursuing a sale of the company for at least one year. Under certain set conditions, Elliott can file for proxy battles as early as Aug 12 of this year.
Emulex is a provider of network coverage solutions. The company's products include converged network adapters (CNAs), Fibre Channel host bus adapters (HBAs), connectivity management software, embedded storage switches and controllers. Emulex was founded in 1979 and has headquarters in Costa Mesa, California.