EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

12.31.06

Some Interesting Financial Moves by Novell

Posted in Antitrust, Deals, Deception, Finance, Interview, Microsoft at 11:53 pm by Shane Coyle

Well, our interview with Jeremy Allison made front pages on Digg and Slashdot, and I think we made it through the storm without a problem. Over on slashdot, some very interesting things were pointed out by symbolset during the discussion, and I wanted to bring them up here as well.

Previously, I wondered "what is circumventing the spirit of the GPL worth?", pointing to information of a Novell 8-K filing outlining a $350,000 bonus to Novell VP and General Counsel Joseph LaSala for his exceptional contributions. Now, we know what Ron Hovsepian stood to gain from the deal personally.

Hovsepian’s Personal Payoff

He received 778,470 shares of stock awarded 12/20/06.

From this page you can see he’s historically not a big holder.

778,470 @ $6.20 is $4,826,514. No doubt he was hoping for more presents under his tree. Perhaps there will be more for him after the dust settles. Certainly would have been nice for him if the Street had liked the deal and he got a good bump. Too bad.

It’s interesting that seven of ten managers listed here are new to the company in 2006, and almost all are new in the last 18 months.

If I were a stockholder looking at that, and the recent change of course in the company, I might be concerned. The theme is familiar, but I can’t remember where I saw it before… Maybe someone else will reply with that answer.

Here, we learn a bit more about the dire financial straits that Novell was in before making this deal, further evidence that they were not in the "position of advantage", as they and others have suggested.

Novell Troubles

Also, the company is having some trouble filing reports with the SEC, presumably because of options grants.

Just days before this deal was announced they had an interesting 8K report filed.

They owed a ton of cash that was due in 2024, but callable in the event they failed timely filing of reports with the SEC. Apparently that Microsoft money saved their bacon on that one, since immediately after the deal was done it was reported the money had already been paid out to debtors. Their SEC reports should make interesting reading for some time to come.

Being paranoid, though, I wonder if their accountants or the debtor or both aren’t beholden to Microsoft’s business interests in some way. That would be really scary.

And, Novell (like just about every other tech company) has questions regarding Options grants in the past, which could lead to their delisting.

Sonsini Got Questionable Options

I don’t know why we don’t hear more about things like this:

FTA:

The fact that Novell had guidelines for option grants — and that directors strayed from them — is particularly disturbing, said lawyers and academics.

“It should be an issue of shareholder concern whenever a board changes its own compensation,” said Kirk Hanson, the director of the Markkula Center for Applied Ethics at Santa Clara University and a former Stanford University business professor.

While directors are generally permitted to award themselves whatever they want as long as it is publicly disclosed, Hanson said basic principles of corporate governance hold that they should avoid giving themselves pieces of the company just because they can.

And then there’s the spectre of delisting.

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. IBM Comes Under Growing Scrutiny for Increasingly Acting Just Like a Patent Troll Amid Layoffs

    Deservedly if not belatedly too, more and more pundits come to recognise the rogue element which is IBM, having promoted software patents all around the world, utilised software patents aggressively (to attack/marginalise/tax rivals), lobbied the government to antagonise the Supreme Court's decision on Alice (using former IBM staff which it had somehow snuck into the USPTO), created bogus solutions to the side effects (such as patent trolls) and so on



  2. Enemies of Europe: A Month After Promoting UPC in London, Benoît Battistelli and the EPO Do This in Helsinki

    The US-leaning corporate occupation by Battistelli and his big corporate clients (or bosses) comes up north, approaching even Russia's border



  3. You Need to Become Proprietary Software Customer (Microsoft Recommended) to Interact with the European Patent Office

    The European Patent Office (EPO) continues to show technical and bureaucratic anomalies that have essentially turned it into agent of monopolisation, benefiting firms from across the Atlantic



  4. US Congress Should Investigate EPO and Battistelli, Not Just WIPO and Francis Gurry

    The US takes more and more actions against WIPO for abuses against workers, but why not the European Patent Office (EPO) as well?



  5. Amid French Political Actions Against EPO Management French Consulate the Target of Next Week's EPO Staff Protest

    Next Wednesday at lunchtime staff of the European Patent Office will march to the French consulate in Munich in pursuit of labour rights, human rights etc. (not just of EPO staff but also, by extension, all staff in such unaccountable international institutions)



  6. Links 5/5/2016: gNewSense 4.0 released, IPFire 2.19

    Links for the day



  7. Links 4/5/2016: Wine Staging 1.9.9, ImageMagick Bug Fixes

    Links for the day



  8. Links 3/5/2016: Mozilla Firefox 46.0.1, More Jolla Funding

    Links for the day



  9. New Paper About the UPC Explains Why It is Bad for Small- and Medium-sized European Businesses

    A detailed academic analysis of the Unitary (or Unified) Patent Court reveals/concludes/asserts that it is being marketed or promoted using a misleading premise and promise



  10. [ES] Gobiernos en Europa Todavía Activos en Contra de la Gerencia de la EPO

    Todavía hay trabajo político que está siendo hecho — aunque discretamente — contra Battistelli y sus chácales en la alta gerencia de la Oficina Europea de Patentes



  11. Links 3/5/2016: International Day Against DRM, 25th Anniversary of Linux (Kernel) Near

    Links for the day



  12. Interesting Supreme Court Cases About Patents in the United States

    A quick review of some of the latest developments regarding SCOTUS (the US Supreme Court) as far as patents go



  13. Governments in Europe Still Active Against EPO Management

    There is still political work being done -- albeit rather discreetly -- against Battistelli and his goons at the European Patent Office's top-level management



  14. The European Spam Office (EPO)

    EPO budget at 'work', days after doing copy-paste jobs and also working overtime in the weekend for an extravagant and needless/purposeless event (except for Battistelli's own pride)



  15. Not Just Benoît Battistelli and Willy Minnoye (EPO): Željko Topić Too Thinks He is Above the Law, Avoids the Judges and Courts

    The latest developments regarding some of the criminal complaints and civil lawsuits against Topić, who is now a Vice-President at the European Patent Office (EPO)



  16. Nefarious Forces for Patent Abuse and Software Patents in the United States, Australia, India, Korea, and Europe

    A roundup of news from the weekend and today, with emphasis on the elements inside the system (or the media) which push for regressive policies that benefit them financially at the expense of everybody else



  17. [ES] El Sistema de Patentes de los EE.UU: Donde Uno Desperdicia Años en Corte y Gasta $8,000,000 en Honorarios de Abogados Peleándo una Patente Falsa

    un sumario de noticias acerca de las patentes de software en los EE.UU. Y ha lo que han llevado, debido en gran manera al decline en calidad de las patentes por parte de la USPTO (dejando que otros se las arreglen limpiando el desórden)



  18. [ES] La Oficina Europea de Patentes Todavía Sigilósamente Abusiva, Pagará $15,000 en Compensasió a Trabajadora Tras un Tardío Fallo de la ILO

    La Organización Internacional del Trabajo (ILO) emite un fallo en un caso de abuso de la EPO y nota “la excesiva duración de los procedimienteos internos de apelación.”



  19. Links 2/5/2016: Linux 4.6 RC6, DragonBox Pyra

    Links for the day



  20. Links 1/5/2016: Wine 1.9.9, Devuan Jessie 1.0 Beta

    Links for the day



  21. The US Patent System: Where One Wastes Years in Court and Spends $8,000,000 in Lawyers' Fees Fighting a Bogus Patent

    A roundup of news about software patents in the US and what they have led to, owing in part to the USPTO's declining patent quality (leaving others to clean up its mess)



  22. The European Patent Office Still Silently Abusive, Will Pay $15,000 in Compensation to Female Worker After Belated ILO Judgment

    The International Labour Organisation (ILO) issues a judgment on a case of abuse by the EPO and notes "excessive length of the internal appeal proceedings."



  23. [ES] Alice Continúa Quebrando Patentes de Software Asi Que los Abogados de Patentes, Cabilderos de los Monopolistas, Etc. Ahora Atacan a la Corte Suprema por Hacer Esto

    los cabilderos Corpórativos y abogados de patentes están tratándo de poner a Alicia en la tumba, por su impacto en las patentes de software que es muy profundo y así hasta ahora casi indetenible



  24. [ES] ¿Cómo Salvar la Reputación de la EPO?: Crear Más Jurados de Apelaciónes en Europa y Abolir la Malgíada/Malintencionada Fantasía de la UPC

    Una crítica evaluación de lo que ocurre en la Oficina Europea de Patentes (EPO), la que rápidamente se está yendo para abajo (y degradando sobre todo) a el nivel de los sistemas Chinos, en conjuntamente con corrupción, los abusos, y la bajísima calidad de las patentes



  25. [ES] La Corte de Apelaciónes del Circuito Federal (CAFC) Acaba de Ponerse a Favor de los Trolles de Patentes

    la tristémente célebre CAFC, que manifestó las patentes de software en los EE.UU, acaba de dar un regalo a los trolles de patentes quienes típicamente usan las patentes de software para extorsión enc complicidad con los jueces del Este de Texas



  26. [ES] Análisis de los Últimos Datos de Lex Machina Acerca de la Litigación de Patentes Muestra Como está Declinándo

    el Professor Mark Lemley de Lex Machina resalta las tendencias en litigation al colectar y analizar datos relacionados con patente y concerniéntes a monopolios intelectuales en general; actualmente muestra una sequía de litigaciones (muestran que ha disminuído)



  27. [ES] La India Está Teniendo Otra Prueba de los Peligros de las Patentes Occidentales, Debe Aprender a Rechazar Completamente las Patentes de Software en Medio de Gran Presión

    El gigante de software que es la India continua enfrentándos ea la cruel y agresivo cabildeo de Occidente, haciéndo que este controle a la India por patentes que no deberían de existir en primer lugar



  28. [ES] Microsoft Dice que Continuará Extorsiónando a Compañías Que Distribuyan Linux, Usando Patentes de Software Usuallmente

    La guerra de Microsoft contra Linux, una guerra que es peleada usando patentes de software patents (por ganancias y/o por chantáje con arreglos empaquetados), todavía continúa a pesar de todas las tácticas de relaciónes públicas de Microsoft y sus sócios



  29. Alice Continues to Smash Software Patents So Patent Lawyers, Monopolists' Lobbyists Etc. Now Attack the Supreme Court for Doing This

    Corporate lobbyists and patent lawyers are trying to put Alice in the grave, for its impact on software patents is very profound and thus far almost unstoppable



  30. How to Salvage the EPO's Reputation: Create More Boards of Appeal in Europe and Abolish the Misguided UPC Fantasy

    A critical evaluation of what goes on at the European Patent Office (EPO), which is quickly descending down (and overall degrading) to the level of Chinese systems, along with the corruption, the abuses, and the low quality of patents


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts