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. More French Politicians Are Complaining That Benoît Battistelli is a Disgrace to France and Urge for Action

    The backlash against Battistelli spills well outside the EPO and is now apparent even at the French National Assembly



  2. Links 3/12/2016: Mageia 5.1 Released, Mozilla Revenue at $421.3M

    Links for the day



  3. Canadian Intellectual Property Office (CIPO) Sees Decline in Patent Applications and It May Actually be a Good Thing

    Challenging the false belief that the more patents society has the better off it will be, citing examples and news from north America



  4. Blockchain Domain Infested With Software Patents, MasterCard Among the Culprits

    Worrying signs that an area of Free/Open Source software innovation is getting impacted by the plague of software patents



  5. Dutch Media Covers Latest EPO Scandals, German Media Totally Absent (a Media Blackout of Convenience)

    Our observations regarding the apparent media disinterest in EPO scandals, especially at the very core of the EPO (principal host country)



  6. Relocating the Boards of Appeal to Haar is a Poisonous Priority at Battistelli's EPO

    Revisiting Battistelli's effort to chop off the appeal boards that are necessary for ensuring patent quality at the EPO



  7. Links 2/12/2016: Mint Betas, Chrome 55, KDevelop 5.0.3, PHP 7.1.0

    Links for the day



  8. The Rule of Law and Justice Don't Exist Inside the EPO, Confirms the International Labour Organisation (ILO)

    Further analysis of the latest rulings from the ILO -- decisions that were long expected



  9. A Day in the Life of... Battistelli's Banana Republic

    This is part 5 of a fictional diary from the EPO



  10. Links 1/12/2016: Devuan Beta, R3 Liberates Code

    Links for the day



  11. Two ILO Decisions on EPO Cases Are Released, at Least One Judgment is Considered Good for Staff

    Years later (as justice is too slow, partly because of the EPO, being the principal culprit that clogs up the ILO's tribunal system) there is a couple of new judgments about EPO abuses against staff



  12. Dutch and French Politicians Complain About the European Patent Office, British Media Coverage Regular Now

    Pressure from the political systems, the scientific community and from the media is growing, as it becomes abundantly apparent that the EPO cannot go on like this



  13. Links 30/11/2016: Git 2.11, GOG Surprise Tomorrow

    Links for the day



  14. The UPC Scam Part IV: Bumps Along the Road for UPC, With or Without the UK and Brexit

    A sobering reality check regarding the UPC, no matter what Lucy Neville-Rolfe says under pressure from Battistelli and some selfish law firms that are based in London



  15. The UPC Scam Part III: The “Patent Mafia”

    Bigwigs like Lucy Neville-Rolfe and Benoît Battistelli, together with Team UPC and its tiny minority interests (self enrichment), are conspiring to hijack the laws of Europe, doing so across many national borders with unique and locally-steered patent policy in one fell swoop



  16. The UPC Scam Part II: The Patent Echo Chamber at Work, Prematurely Congratulating Itself in Its 'News' Sites





  17. The UPC Scam Part I: EPO-Bribed Media Outlets Lie to Brits (and to Europeans) About the UPC

    An introductory article in a multi-part series about UPC at times of Brexit and Lucy Neville-Rolfe's bizarre sellout to Battistelli



  18. European Public Service Union Asks EPO Administrative Council “to Re-establish the Rule of Law at the European Patent Office”

    The chinchillas of the Administrative Council are assertively asked to tackle the abusive management of the EPO, which gets condemned not only by CERN but also EPSU, which is working with the Dutch government to end lawlessness at the EPO



  19. Links 29/11/2016: Core Apps Hackfest, MuckRock Goes FOSS

    Links for the day



  20. ILOAT Decisions: Upcoming Publication of Two EPO Cases (Abuse Against Staff)

    Reminder about tomorrow's "exceptional public delivery" from the International Labour Organisation (ILO) and a request for additional information



  21. Mixing Politics and EPO: How Battistelli Defies the Very Basic Rules of the Office

    A reminder of the fact that Battistelli was entrenched in French politics even while he was serving at the EPO



  22. EPO DG1 Principal Director “Out of the Muppet Show”

    The ridicule of EPO management is a symptom of a poisonous work environment which now resembles an assembly line of bad patents, where employees are treated unfairly, severely, and in clear defiance of labour laws



  23. Learning From the Mistakes of the US Patent System (and More Latterly China) When Assessing Patent Maximalism

    The warning signs coming both from the East and from the West, demonstrating the pitfalls of a policy too permissive on patents and thus on litigation



  24. The International Labour Organisation Once Again Proves Useless for Labour of the EPO

    The International Labour Organisation (ILO) is once again failing too serve justice, instead just sending complaints elsewhere, in effect into a black hole



  25. CERN Slams the European Patent Office for Abuse of Employees

    The European Organisation for Nuclear Research known as CERN is openly condemning EPO management and the Administrative Council for violation of human/labour rights, not to mention the other abuses that are rampant under Battistelli's notorious regime



  26. Links 28/11/2016: X-Plane 11 Beta, Early Work For C++20, Microsoft Hole in RHEL

    Links for the day



  27. Patents Roundup: Patent Trolls, Patent Quality, and the Patent Trial and Appeal Board (“PTAB”)

    A week's roundup of patent news from the United States, where there's a mixture of good news, bad news, good reporting, and misleading (or selective) reporting



  28. Patent Attorney Mark Summerfield: EPO Administrative Council “Members Should be Ashamed.”

    A recent comment about Battistelli's misbehaviour and the Administrative Council's utter failure to get a grip on him



  29. EPO Caricature: Slowing Down Justice and Giving Luxury Cars as Gifts

    The latest cartoon making the rounds is about SLAPP and alleged bribery in Croatia (more on that soon)



  30. Director Lee's USPTO Managed to Drain the Swamp Filled by David Kappos and His Colleagues, But Trump Will Likely Dismiss Her Soon

    Just as the USPTO begins to get its act together and limit patent scope based on reasonably liberal SCOTUS Justices there are many reports suggesting that the Director of the USPTO will be driven out, courtesy of the Trump presidency that will also perturb SCTOUS


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