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. Links 24/11/2014: Linux 3.18-rc6, Qualcomm Eyes GNU/Linux Servers

    Links for the day



  2. Boycotting Micro Focus International

    Microsoft's "Partner of the Year" is taking over the patron of SUSE and all of Novell's remains, except the patents (Microsoft has already grabbed those)



  3. Vesna Stilin's Remarks on Željko Topić: Part XI

    Vesna Stilin speaks about her confrontation with EPO Vice-President Željko Topić, who has criminal lawsuits against him in Croatia



  4. Links 22/11/2014: Linux Mint 17.1, Ubuntu MATE

    Links for the day



  5. Links 21/11/2014: Problems at Debian, Jolla Tablet

    Links for the day



  6. Links 18/11/2014: Linux 3.18 RC 5, New DigiKam

    Links for the day



  7. Special Report: Many Criminal Charges Against EPO Vice-President Željko Topić

    The abuses of Željko Topić, who has gained notoriety in his home country, are rapidly becoming public knowledge across all of Europe



  8. Links 16/11/2014: Xfdesktop 4.10.3, GNU Hello 2.10

    Links for the day



  9. Microsoft is Going Into the Anti-Whistleblowing Business, Dodges Criticism Over 19-Year Bug Door in Windows

    With Aorato acquisition Microsoft helps protect the criminals (from whistleblowers) and with lies about .NET Microsoft distracts from a bug that has facilitated remote access into Windows (by those in the know) for nearly two decades



  10. Reaffirming Microsoft's Long-Known Hostility Towards Net Neutrality, Microsoft Crashed Juniper

    Steve Ballmer is ranting against net neutrality and Juniper's business is in trouble after a lot of executives from Microsoft took over most top positions there



  11. Another Massive Step Towards Elimination of Software Patents as Even CAFC Rules Against Them

    After SCOTUS gets involved in the Ultramercial case, the CAFC finally decides to actually serve justice rather than dogma



  12. The GOP's Patent Reform Plan Not Effective Enough to Stop Massive Patent Trolls Like Microsoft/Nokia

    The corporations-serving GOP says that it wants a patent reform, but another reminder is needed of the futility of the suggested changes



  13. How the EPO's Executive Branch (Battistelli and Topić) Banned Scrutiny and Created Authoritarian Model of Control: Part X

    A look at highly dubious moves by EPO President Battistelli and his right-hand man Topić, whose abuses are becoming hard to oversee or even report



  14. Links 15/11/2014: Linux Mint 17.1 Release Candidate, Popcorn Time 0.3.5

    Links for the day



  15. IRC Proceedings: October 26th, 2014 – November 8th, 2014

    Many IRC logs



  16. The Terrible Joke Which is Microsoft 'Loving' Linux: Nightmares With UEFI 'Secure' Boot (i.e. Windows Monopoly Imposed) Continue to Affect GNU/Linux Users

    A reminder of Microsoft's sheer hostility towards GNU/Linux and long-reaching sabotage of GNU/Linux installations



  17. Patent Lawyers Worry About Section 101 in 'Alice' (and Other Patent News)

    A quick roundup of news of interest regarding software patents



  18. Will Write for FUD (Against FOSS)

    Black Duck rears its ugly head again, serving to show that it is in the business of changing perceptions and not in the information or analysis business



  19. Debunking Several Days of Never-Ending Lies About Microsoft and .NET

    .NET is not "Open Source", it cannot be forked (there remains patent threat), Visual Studio is still completely proprietary and it is expected to come to other platforms only because Windows has lost its dominance and Microsoft wants to perpetually control APIs (with software patents) and hence reign over developers



  20. Links 14/11/2014: LibreOffice 4.3.4, Ads Now in Firefox

    Links for the day



  21. Links 14/11/2014: GNOME 3.14.2, PulseAudio 6.0

    Links for the day



  22. Microsoft Windows is Still Designed as a Paradise of Back Doors, Intrusion, Wiretaps, and Interception

    At many levels -- from communication to storage and encryption -- Windows is designed for the very opposite of security



  23. Forget the FUD About Bash and OpenSSL, Microsoft Windows Blamed for Massive Credit Cards Heist

    Home Depot learns its lesson from a Microsoft Windows disaster, but it stays with proprietary software rather than move to software that is actively audited by many people and is inherently better maintained (Free/libre software)



  24. Windows 'Update' and NSA Back Doors, Including a 19-Year Bug Door in Microsoft Windows

    The back doors-enabled Microsoft Windows is being revealed and portrayed as the Swiss cheese that it really is after massive holes are discovered (mostly to be buried by a .NET propaganda blitz)



  25. Revealed: Microsoft is Trying to Corrupt the UK in Order to Eliminate Its OpenDocument Format-Oriented Standards Policy

    Microsoft interference with Britain's preference for ODF is now confirmed, thanks to a valuable news report from Computer Weekly; OOXML lock-in is being unleashed by Microsoft on Android users



  26. Links 13/11/2014: Ubuntu MATE 14.04.1 LTS, New KDE Plasma

    Links for the day



  27. .NET is NOT "Open Source", But Microsoft's Minions Shamelessly Openwash It Right Now

    The openwashing of .NET continues with yet another publicity stunt that is intended to lock in developers



  28. Links 11/11/2014: GNOME Trademark Dispute Settled, Mozilla Embraces Tor

    Links for the day



  29. Patent Reform Subversion After Republican (GOP) 'Win' in US Senate

    The Grand Corporations Party, or the political party which serves large businesses that are funding it, continues to just focus on a mirage of a 'reform' rather than tackle the real issues where culprits include very large businesses such as Microsoft and Apple



  30. Microsoft-Armed Patent Troll MOSAID (Now Conversant) Wants to Sweep up More Patents for Litigation

    Reports about patent trolls and scope of patents serve to show what the foes of Free software are up to right now


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