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 20/10/2014: Cloudera and Red Hat, Debian 7.7, and Vivid Vervet

    Links for the day



  2. Links 20/10/2014: 10 Years Since First Ubuntu Release

    Links for the day



  3. How Patent Lawyers Analyze Alice v. CLS Bank

    Breaking down a patent lawyer's analysis of a Supreme Court's decision that seemingly invalidated hundreds of thousands of software patents



  4. Is It Google's Turn to Head the USPTO Corporation?

    The industry-led USPTO continues to be coordinated by some of its biggest clients, despite issues associated with conflicting interests



  5. The EPO's Public Relations Disaster Amid Distrust From Within (and EPO Communications Chief Leaves): Part VII

    Amid unrest and suspicion of misconduct in the EPO's management (ongoing for months if not years), Transparency International steps in, but the EPO's management completely ignores Transparency International, refusing to collaborate; the PR chief of the EPO is apparently being pushed out in the mean time



  6. Links 18/10/2014: Debian Plans for Init Systems, Tails 1.2

    Links for the day



  7. Links 18/10/2014: New ELive, Android Expansion

    Links for the day



  8. Another Fresh Blow to Software Patents (and With Them Patent Trolls)

    Another new development shows that more burden of proof is to be put on the litigant, thus discouraging the most infamous serial patent aggressors and reducing the incentive to settle with a payment out of court



  9. Links 16/10/2014: New Android, SSL 3.0 Flaw

    Links for the day



  10. How the Corporate Press Deceives and Sells Microsoft Agenda

    Various new examples of media propaganda that distorts or makes up the facts (bias/lies by omission/selection) and where this is all coming from



  11. Vista 10 is Still Vapourware, But We Already Know It Will Increase Surveillance on Its Users and Contain Malicious Back Doors

    The villainous company which makes insecure-by-design operating systems will continue to do so, but in the mean time the corporate press covers only bugs in FOSS, not back doors in proprietary software



  12. Links 15/10/2014: KDE Plasma 5.1 is Out, GOG Reaches 100-Title Mark

    Links for the day



  13. With .NET Foundation Affiliation Xamarin is Another Step Closer to Being Absorbed by Microsoft

    Xamarin is not even trying to pretend that separation exists between Microsoft and its work; yet another collaboration is announced



  14. The EPO's Protection Triangle of Battistelli, Kongstad, and Topić: Part VI

    Jesper Kongstad, Benoît Battistelli, and Zeljko Topić are uncomfortably close personally and professionally, so suspicions arise that nepotism and protectionism play a negative role that negatively affects the European public



  15. Corporate Media Confirms the Demise of Software Patents in the United States; Will India and Europe Follow?

    It has become increasingly official that software patents are being weakened in the United States' USPTO as well as the courts; will software leaders such as India and Europe stop trying to imitate the old USPTO?



  16. Links 14/10/2014: CAINE 6, New RHEL, Dronecode

    Links for the day



  17. Microsoft's Disdain for Women Steals the Show at a Women's Event

    Steve Ballmer's successor, Satya Nadella, is still too tactless to lie to the audience, having been given --through subversive means -- a platform at a conference that should have shunned Microsoft, a famously misogynistic company



  18. SCOTUS May Soon Put an End to the 'Copyrights on APIs' Question While Proprietary Giants Continue to Harass Android/Linux in Every Way Conceivable

    Google takes its fight over API freedom to the Supreme Court in the Unites States and it also takes that longstanding patent harassment from the Microsoft- and Apple-backed troll (Rockstar) out of East Texas



  19. Patent Lawsuits Almost Halved After SCOTUS Ruling on 'Abstract' Software Patents

    The barrier for acceptance of software patent applications is raised in the United States and patent lawsuits, many of which involve software these days, are down very sharply, based on new figures from Lex Machina



  20. Links 13/10/2014: ChromeOS and EXT, Debian Resists Systemd Domination

    Links for the day



  21. Links 12/10/2014: Blackphone Tablet, Sony's Firefox OS Port

    Links for the day



  22. Links 9/10/2014: Free Software in Germany, Lenovo Tablets With Android

    Links for the day



  23. Links 8/10/2014: A Lot of Linux+AMD News, New ROSA Desktop Is Out

    Links for the day



  24. Lawyers' Propaganda About Software Patents and a New AstroTurf Entity Called Innovation Alliance

    Patent propaganda and deception from patent lawyers (among other parasites such as patent trolls) continues to flood the Web, intersecting with reports that prove them totally wrong



  25. How Microsoft Handles Disasters: Grace Hopper Conference Has Been Infiltrated by "Microsoft Disaster Response"

    Free/Open Source software (FOSS) must be a disaster to Microsoft's bottom line because Microsoft is sending "Microsoft Disaster Response" to infiltrate and disrupt a conference about women in FOSS



  26. Links 8/10/2014: Gummersbach Moves to GNU/Linux, Docker Acquires Koality, KDE Frameworks 5.3

    Links for the day



  27. Links 7/10/2014: CAINE 6.0, PC-BSD 10.0.3

    Links for the day



  28. Benoît Battistelli's Balkan Standards in EPO: Part V

    How the European Patent Office facilitated the inclusion of previously-connected elements that are best known for misconduct and dirty politics



  29. Symptoms of Post-x86 Era: Even Intel Apologists Turn Against Bribes-Dependent Intel While Microsoft Continues to Deceive Journalists on Patents in Order to Create a Scare

    The Wintel press, which is bribed by companies that it covers, is challenged by prominent developers and Microsoft continues to plant its patent propaganda in the Wintel-centric (and paid) press



  30. Microsoft Reinforces Its Criminal Organisation Status by Bribing and Corrupting More Officials, Even in Europe

    More criminal activity from Microsoft in Romania and a new TV programme that sheds light on Microsoft's dirty assault on Free software in France


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