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 29/7/2015: Akademy 2015 Ends, NetBSD 7.0 RC

    Links for the day



  2. MPEG-LA is Preparing New Patent Obstruction (Called DASH) Against Free Software, OIN Grows

    A new conspiracy against free multimedia software, set up by the MPEG cartel, is called DASH



  3. New Zealand's Media Gets History Wrong on Software Patents

    Setting the record straight on the fight against software patents in New Zealand



  4. Not Only Vista 10 Crashes a Lot, Any .NET Application Does Too

    Microsoft software is quickly becoming synonymous with crashes as any piece of software developed with Microsoft's tools, not just the underlying platform, crashes chronically



  5. The Government of Bulgaria Sells Out to Microsoft, Again

    Despite some promises and reassurances that Bulgaria will consider Free/libre software, the Bulgarian government hands out a lot more of taxpayers' money to the Mafia



  6. Corporate Media Finally Finds Out That Vista 10 Crashes a Lot

    Stability issues of Vista 10 are belatedly reported to be a major catastrophe, leaving it unusable for many early adopters



  7. Links 28/7/2015: Linux 4.2 RC4, New Logos and Bug 'Branding' for FUD

    Links for the day



  8. Patents Roundup: Technicolor, Alice, Voip-Pal, Fitbit, Marijuana Patents, and JDate

    A look at some of last week's patent news, with imperative responses that criticise corporate exploitation of patents for protectionism (excluding and/or driving away the competition using legal threats)



  9. Corporate Lobbyists Including Koch-Connected Front Groups Attack Real and Perceived Patent Reform in the United States

    Looking at some of the latest propaganda for and against a bill which is already too watered-down to actually fix the US patent system



  10. Patents in the Android World Further Complicate Freedom in This Linux-Powered Platform

    A survey of last week's news with special focus on Google and Android, which are trying to coexist and thrive in a world full of patent maximalists



  11. The 'Unitary' Patent Trojan Horse Rammed Down the Throat of Europe

    Under the guise of 'unification' or 'unity', existing patent systems are being abandoned and more power gets passed to corrupt EPO officials



  12. HEVC Cartel is Not News, Only the Names of Backers and the Costs Are New

    A few remarks on and a roundup of recent articles about HEVC, which we first wrote about in spring



  13. IRC Proceedings: July 12th, 2015 – July 25th, 2015

    Many IRC logs



  14. Links 26/7/2015: Purism Librem and Freedom, Akademy Updates

    Links for the day



  15. Vista 10 (Windows 10) Has NSA Back Doors and Front Doors

    Vista 10 to bring new ways for spies (and other crackers) to remotely access people's computers and remotely modify the binary files on them (via Windows Update, which for most people cannot be disabled)



  16. Vista 10 Not Ready, But Released Anyway

    Despite severe technical issues in the rushed-out-the-door Vista 10, Microsoft decides to stick with the deadline, only days after reporting billions of dollars in losses



  17. Links 25/7/2015: Plasma Mobile, Linux Mint 17.2 OEM

    Links for the day



  18. Links 24/7/2015: openSUSE Leap 42.1, Intel With Rackspace for OpenStack

    Links for the day



  19. Links 24/7/2015: GNOME 3.17.4, Mozilla Developer Network Turns 10

    Links for the day



  20. Microsoft Has Run Out of Attempts and Vista 10 Will Definitely Fail

    As Microsoft admits billions of dollars in losses just days before Vista 10 is pushed as a 'free' upgrade, there is no concrete sign that financial recovery is imminent, for the bigger cash cow (Office) suffers a similar fate



  21. GNU/Linux Circles Ought to Stop Promoting Visual Studio, Which is Neither Cross-Platform Nor Free Software

    Media carries on openwashing Visual Studio and perpetuating the illusion that it is not tied to Microsoft Windows



  22. Spinning Proprietary Software Dangers as Dangers of Free/Libre Software

    News sites mislead their readers, teaching them that the biggest dangers associated with proprietary software are in fact problems exclusive to Free/libre Open Source software



  23. Links 23/7/2015: New RHEL Release, Capital One Releases Code

    Links for the day



  24. Terminology of Patent Lawyers and Pro-Patents Media Serves to Mislead the Public

    An outline of stories where the language used to describe patents is grossly distorted so as to bias the reality and mislead the audience/readers



  25. Amid Billions in Losses, Microsoft Tries to Conquer the Competition (Which Already Wins)

    The 'Embrace, Extend, Extinguish' strategy goes a few steps further as Microsoft looks to dominate developers, devices and servers that are running Free/libre software



  26. Microsoft Losing Billions of Dollars is Not News

    Few remarks on Microsoft's latest admission that it is losing a lot of money



  27. Links 22/7/2015: Kodi 15.0, MKVToolnix 8.2.0

    Links for the day



  28. The Technology Sector in the US Has Gotten Fed Up With Apple's Patent Aggression Against Android/Linux

    Apple is desperately trying to stop Android from increasing its levels of dominance (in phones, tablets, watches, and so on), so Silicon Valley is lining up against Apple, antagonising its misuse/abuse of patents for anticompetitive purposes



  29. Patents Regime in Europe: Mixture of Greed, Competition Abuses, and Propaganda

    A roundup of the latest patent news from Europe, focusing on Italy, the UK, Germany, and Hungary



  30. Patent 'Reform' in US Congress Still Under Attack by Patent Lawyers and Corporate Lobbyists

    The latest instances of assault on changes to the US patent system, demonstrated through an elaborative survey of the media (two days' worth)


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