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

03.02.10

Novell May be Going Private, Hedge Fund Has Cash

Posted in Finance, Microsoft, Novell, SCO at 7:01 pm by Dr. Roy Schestowitz

Elliott Associates logo

Summary: Novell is having a ‘SCO moment’ as takeover seems likely, courtesy of a funding pool whose money could come from anywhere

BIG news came in via reader “dyfet”. Just over a year ago, Canonical’s current COO (who worked for Novell) said that Novell should go private. According to this new report, it might happen shortly.

Elliott offers to take Novell private for $2 bln

[...]

This offer price represents a 21 percent premium to Novell’s Tuesday close on Nasdaq.

There will surely be a lot of coverage like this later on. Where do these funds come from? That firm seems somewhat dodgy, just just like those firms that proposed saving SCO (financial rescue of a trial against Linux).

The vulture wars

A New York hedge fund is in a court battle with the Republic of Congo over who is robbing the oil-rich but dirtpoor African nation.

[...]

Although he didn’t mention any names, the President was clearly referring to Kensington International, a Cayman Islands company that owns more than $100 million of Congo’s sovereign debt and is controlled by Elliott Associates, a $6.5 billion New York City hedge fund.

Cayman Islands? Congo? Control by proxy? What is this firm? According to this press release, it describes itself as follows:

Elliott Associates, L.P. and its sister fund, Elliott International, L.P. have more than $5.2 billion of capital under management as of July 1, 2005. Founded in 1977, Elliott Associates is one of the oldest hedge funds under continuous management. The Elliott funds’ investors include large institutions, high-net-worth individuals and families, and employees of the firm.

So in principle, a company like Microsoft too can lend some money for Elliott Associates to use that money. That’s just a theory. We’ll soon post today’s IRC logs which contain more information.

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

7 Comments

  1. JohnD said,

    March 3, 2010 at 8:19 am

    Gravatar

    A little food for thought. A hedge fund isn’t going to invest in a company that’s a sinking ship financially. The same goes for any other company like M$ or SAP especially given that there are other companies out there who (according to you) are doing much better in the Linux business i.e. RedHat. Even if M$ were to make an offer for Novell I seriously doubt the DOJ would allow it to go through. Apple and most likely RedHat would make a huge stink about a company that already has a monopoly in the OS arena to expand into one of it’s only competitors’ arena. Let’s review the reasons for buying a company. Eliminate competition for similar products (usual M$ tactic), expand into new area(s), improve market share in existing areas. If Novell is circling the drain financially as you’ve tried to lead your readers to believe there is no reason to buy Novell – it will die on it’s own. For the last two Novell would only be considered if the purchaser thinks they can contribute positively to the bottom line. In short if you’re correct and Novell is purchased or taken private – you’ve been wrong about their financial status.

    Roy Schestowitz Reply:

    No, Novell still has assets.

    By the way, rumours about takeover have floated for quite some time. Novell tried to deny them, poorly (masterful phrasing).

  2. JohnD said,

    March 3, 2010 at 8:32 am

    Gravatar

    And before you start pointing to Elliot’s statement – the keyword in the article is “undervalued”. You have someone who doesn’t have a clue about technology looking to manipulate a company in such a way as to improve on it’s investment. This is what happens when you let bean counters make decisions. IBM just laid off how many people? The world wide economy is in the toilet and this guy is looking to make a quick buck and improve his bottom line.

    Roy Schestowitz Reply:

    IBM is probably moving jobs to India this month (I saw a report a few days ago). I’d call it offshoring/globalisation, not layoffs. Microsoft does that too to an extent (and many of its US workers are also imported).

  3. your_friend said,

    March 4, 2010 at 10:10 am

    Gravatar

    JohnD, Novell does not have to be in good financial shape or offer anything of value to society for people to want to keep it running. SCO is an example of a company that exists to harass competition through lawsuits and is mostly funded by Microsoft through intermediaries like Baystar Capital. SCO quit offering anything of net value to society about a decade ago and has been a money loser for most ofthat time. Boycott Novell noticed the same thing happening to Novell, a powerful former competitor being turned into a satellite of Microsoft and then proxy for harassing competitors. It should be pretty obvious by now that doing as Microsoft says and boosting Microsoft tech is a sure way to lose lots of money and ruin your tech business.

    Microsoft’s work with both SCO and Novell is classic anti-trust activity and the US DOJ should be acting against it. There are laws against this kind of “competition” because it offends and robs society as whole and specific companies in particular. There are limits to how well a free market serves society. Reasonable people make laws against obvious predation like mugging, high seas piracy and business trusts designed to destroy competition in markets. With Oracle eating Sun and Microsoft having devoured Yahoo, it looks like there are no free standing Unix companies left and precious few early internet giants not subjected by Microsoft. Google stands alone because Microsoft destroyed the rest. It is annoying but typical that Microsoft now screams “anti-trust” at Google because Google refuses to yield and is economically successful because of it.

    JohnD Reply:

    I’m willing to be that the last thing this guy/company wants to do is to keep Novell running. I’m betting that his goal is to take it private so he can sell off the pieces. Roy sent me some links last night about other things this guy has done and it looks like his motivator is money plain and simple.
    SCO isn’t so clear cut in the eyes of the law. M$ may have been giving money via back channels to help the lawsuits, but that’s a patent issue which is legal in the US. There is no direct assault on Linux in terms of removing it from competition – just that it “may” be infringing on patents. There is nothing for the DOJ to act on at this point. Now if M$ were to purchase Novell that would be an uphill battle because now they are gaining more market share by owning a company that sells (support) for a competing OS.
    If M$ is working behind the scenes it’s probably to get the Novell patent portfolio without having to worry about DOJ battles. They could then sell of all the Unix related stuff to trolls and God only knows what else.
    I saw the Google thing coming from a long way off. Turn about is fair play.

    Roy Schestowitz Reply:

    Microsoft did this to Google before (several times but not confirmed by Microsoft).

What Else is New


  1. Report From Yesterday's Debate About the European Patent Office (EPO) at the Bavarian Landtag

    A report of the EPO debate which took place at the Bavarian Landtag yesterday (21/2/2017)



  2. Links 22/2/2017: Wine-Staging 2.2, Nautilus 3.24

    Links for the day



  3. French Politician Richard Yung Tells the Government About Abuses at the European Patent Office (EPO)

    The subject of EPO scandals has once again landed in French politics, just a couple of months since it last happened



  4. The Sickness of the EPO – Part II: Background Information and Insights

    With a privatised, in-house (sometimes outsourced and for-profit) force for surveillance, policing, justice, public relations and now medical assessment (mere vassals or marionettes of the management) the EPO serves to show that it has become indistinguishable from North Korea, where the Supreme Leader gets to control every single aspect (absolutely no separation of powers)



  5. EPO Cartoon/Caricature by KrewinkelKrijst

    A new rendition by Dutch cartoonist and illustrator KrewinkelKrijst



  6. Inverting Narratives: IAM 'Magazine' Paints Massive Patent Bully Microsoft (Preying on the Weak) as a Defender of the Powerless

    Selective coverage and deliberate misinterpretation of Microsoft's tactics (patent settlement under threat, disguised as "pre-installation of some of the US company’s software products") as seen in IAM almost every week these days



  7. The Sickness of the EPO – Part I: Motivation for New Series of Articles

    An introduction or prelude to a long series of upcoming posts, whose purpose is to show governance by coercion, pressure, retribution and tribalism rather than professional relationship between human beings at the European Patent Office (EPO)



  8. Insensitivity at the EPO’s Management – Part VII: EPO Hypocrisy on Cancer and Lack of Feedback to and From ECPC

    The European Cancer Patient Coalition (ECPC), which calls itself "the largest European cancer patients' umbrella organisation," fails to fulfill its duties, says a source of ours, and the EPO makes things even worse



  9. Links 21/2/2017: KDE Plasma 5.9.2 in Chakra GNU/Linux, pfSense 2.3.3

    Links for the day



  10. EPO Caricature: Battistelli's Wall

    Battistelli's solution to everything at the EPO is exclusion and barriers



  11. The 'New' Microsoft is Still Acting Like a Dangerous Cult in an Effort to Hijack and/or Undermine All Free/Open Source Software

    In an effort to combat any large deployment of non-Microsoft software, the company goes personal and attempts to overthrow even management that is not receptive to Microsoft's agenda



  12. PTAB Petitioned to Help Against Patent Troll InfoGation Corp., Which Goes After Linux/Android OEMs in China

    A new example of software patents against Free software, or trolls against companies that are distributing freedom-respecting software from a country where these patents are not even potent (they don't exist there)



  13. Links 20/2/2017: Linux 4.10, LineageOS Milestone

    Links for the day



  14. No, Doing Mathematical Operations on a Processor Does Not Make Algorithms Patent-Eligible

    Old and familiar tricks -- a method for tricking examiners into the idea that algorithms are actual machines -- are being peddled by Watchtroll again



  15. Paid-for UPC Proponent, IAM 'Magazine', Debunked on UPC Again

    The impact of the corrupted (by EPO money) media goes further than one might expect and even 'borrows' out-of-date news in order to promote the UPC



  16. Lack of Justice in and Around the EPO Drawing Scrutiny

    The status of the EPO as an entity above the law (in Germany, the Netherlands, Switzerland and so on) is becoming the subject of press reports and staff is leaving in large numbers



  17. Links 19/2/2017: GParted 0.28.1, LibreOffice Donations Record

    Links for the day



  18. The EPO is Becoming an Embarrassment to Europe and a Growing Threat to the European Union

    The increasingly pathetic moves by Battistelli and the ever-declining image/status of the EPO (only 0% of polled stakeholders approve Battistelli's management) is causing damage to the reputation of the European Union, even if the EPO is not a European Union organ but an international one



  19. Patent Misconceptions Promoted by the Patent Meta-Industry

    Cherry-picking one's way into the perception of patent eligibility for software and the misguided belief that without patents there will be no innovation



  20. As the United States Shuts Its Door on Low-Quality Patents the Patent Trolls Move to Asia

    Disintegration of Intellectual Ventures (further shrinkage after losing software patents at CAFC), China's massive patent bubble, and Singapore's implicit invitation/facilitation of patent trolls (bubble economy)



  21. Links 17/2/2017: Wine 2.2, New Ubuntu LTS

    Links for the day



  22. Bad Advice From Mintz Levin and Bejin Bieneman PLC Would Have People Believe That Software Patents Are Still Worth Pursuing

    The latest examples of misleading articles which, in spite of the avalanche of software patents in the United States, continue to promote these



  23. Patents Are Not Property, They Are a Monopoly, and They Are Not Owned But Temporarily Granted

    Patent maximalism and distortion of concepts associated with patents tackled again, for terminology is being hijacked by those who turned patents into their "milking cows"



  24. SoftBank Group, New Owner of ARM, Could Potentially Become (in Part) a Patent Troll or an Aggressor Like Qualcomm

    SoftBank grabbed headlines (in the West at least) when it bought ARM, but will it soon grab headlines for going after practicing companies using a bunch of patents that it got from Inventergy, ARM, and beyond?



  25. Technicolor, Having Turned Into a Patent Troll, Attacks Android/Tizen/Linux With Patents in Europe

    Technicolor, which a lot of the media portrayed as a patent troll in previous years (especially after it had sued Apple, HTC and Samsung), is now taking action against Samsung in Europe (Paris, Dusseldorf and Mannheim)



  26. Michelle Lee is Still “in Charge” of the US Patent System

    Contrary to a malicious whispering campaign against Lee (a coup attempt, courtesy of patent maximalists who make a living from mass litigation), she is still in charge of the USPTO



  27. Our Assessment: EPO Wants a Lot of Low-Quality Patents and Low-Paid Staff With UPC (Prosecution Galore)

    The European Patent Office seems to be less interested in examination and more interested in facilitating overzealous prosecution all across Europe and beyond; The Administrative Council has shown no signs that it is interested in profound changes, except those proposed by Battistelli in the face of growing resistance from staff and from ordinary stakeholders



  28. Links 16/2/2017: HITMAN for GNU/Linux, Go 1.8

    Links for the day



  29. Yet More Complaints About the European Patent Office in the Bavarian Regional Government

    Some German politicians do care about the welfare of EPO staff, a lot more so than the EPO's management that is actively crushing this staff



  30. EPO Staff Representatives to Escalate Complaint About Severe Injustices to the EPO's Secretive Board 28

    In a new letter to President Benoît Battistelli it is made abundantly apparent -- however politely -- that Battistelli's gross abuses could further complicate things for Battistelli, who is already embroiled in a fight with his predecessor, Roland Grossenbacher


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