Emulex Corp. (ELX), now facing the prospect of a shareholder meeting and with it a potential challenge to its current board of directors, denied early this week Broadcom Corp.'s (BRCM) request for non-public information that Broadcom said could influence the terms of its acquisition offer.

The exchange, made public in a Securities and Exchange Commission filing by Broadcom on Tuesday, comes as the two companies are locked in an increasingly bitter takeover battle.

Emulex has insisted that Broadcom's acquisition offer of $764 million, or $9.25 a share, undervalues the company, based in part on future business that Emulex cannot yet disclose.

In an email sent Monday, Emulex Chief Executive Jim McCluney responded to a phone conversation between him and Broadcom Chief Executive Scott McGregor. According to McCluney, McGregor asked for "highly competitive and sensitive information regarding our technology," as well as details of customer plans, design wins and financial information.

"We fail to see how it would be in the best interests of Emulex stockholders to share such information with Broadcom," McCluney wrote.

McGregor responded: "If Emulex can justify a valuation that is not ascertainable from public information, we would consider it."

Broadcom's filing also initiated a solicitation from it asking Emulex shareholders to consent to the holding of a shareholder meeting, where Broadcom plans to nominate an alternative slate of directors.

McGregor said he thinks shareholders will back the move to hold a meeting, though the official solicitation began only this morning and so there are not yet any figures.

The Broadcom chief told Dow Jones Newswires that they expect to be able to move forward "by the end of the month or so."

Emulex responded to Broadcom's filing by recommending shareholders not tender their shares or participate in the consent solicitation in a statement released Tuesday.

Emulex also said it will hold its annual shareholder meeting Nov. 19.

The solicitation is one of several avenues Broadcom is now pursuing in its hostile takeover effort of Emulex, which makes networking products used in company data centers.

In addition to a lawsuit filed in Delaware court seeking the dissolution of Emulex's poison pill provision, Broadcom also initiated a tender offer for Emulex shares.

After receiving about 2.3 million Emulex shares out of 82.9 million shares outstanding by the initial deadline of June 3, Broadcom extended the offer until June 17.

Emulex, though, remains entrenched, filing a lawsuit to block Broadcom's actions and insisting that Broadcom's offer undervalues the company, is opportunistic given the difficult business conditions amid the recession, and doesn't factor in the future business potential of certain product design wins of which Broadcom alledgedly is aware.

Emulex said that "the Board is focused on delivering value and will continue to take actions it believes are in the best interests of stock holders."

And with Emulex shares consistently trading well above the $9.25-a-share offer price since the offer was announced in April, it's unlikely many shareholders will be willing to tender. Emulex shares closed Tuesday down 0.2% at $10.58.

For his part, McGregor said that providing shareholders with the opportunity to address management during a shareholder meeting is the next vital step.

"The most important part at this point is the consent," he said.

Broadcom shares closed Tuesday up 5.5% at $27.25.

-By Jerry A. DiColo, Dow Jones Newswires; 201-938-5670; jerry.dicolo@dowjones.com