DOW JONES NEWSWIRES

Emulex Corp. (ELX) said its board of directors unanimously recommended that shareholders reject a $764 million tender offer from Broadcom Corp. (BRCM).

Emulex, which makes the networking technology used to connect the servers and equipment in company data centers, had already rejected the $9.25-a-share offer last week. Broadcom then launched a tender offer for all of Emulex's outstanding shares.

Emulex reitereated Friday the offer "significantly undervalues" its long-term prospects and doesn't adequately compensate shareholders. The company also said the proposed takeover was opportunistic because of some design wins it has had in recent months.

Emulex's shares were recently up 0.3% at $10.60 and Broadcom's were down 0.5% at $20.88.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com