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

03.13.10

Vulture Fund Rumoured to be Planning to Break Novell Apart, Vultures Deny the Claim

Posted in FUD, GNU/Linux, Microsoft, Novell, Red Hat, SLES/SLED, Ubuntu at 6:53 am by Dr. Roy Schestowitz

Vulture

Summary: Disagreement between the press and the hostile acquirer as to whether or not Novell would stay in tact

NOVELL is at a stage of uncertainty and state of denial because it’s likely to be acquired soon [1, 2, 3, 4, 5, 6, 7]. The Novell-faithful people watch with concern as their Novell skills/certifications are at stake and Novell’s BrainShare, which is just days away, has "uncertainty" written all over it. Attendants are likely to bring up questions about the company’s short-term plans. Novell’s PR team promotes the event [1, 2], whereas analysts at Ovum claim that “The end is nigh for Novell”:

After years of acquisition rumors, last week Novell received a buy-out offer from hedge fund Elliott Associates (EA). Whether the offer succeeds or not, Novell is likely to end up in pieces.

[...]

Novell’s parts are more valuable than its sum

Novell’s board is likely to reject the current offer before Novell’s annual conference, BrainShare, starts on 21 March. It can keep rejecting EA’s offers, but it cannot stop EA from going directly to Novell’s shareholders. Should EA be successful, it is likely to pocket Novell’s cash then split the company and sell its constituent parts.

This news report from Bloomberg (also published in BusinessWeek and later corrected slightly) claims that Novell will be torn apart by Singer and his minions, who are only interested in money and not in Novell’s staff, products, and customers.

Elliott Associates LP, the fund manager that made an unsolicited $2 billion offer for Novell Inc., may consider selling the NetWare networking-software unit if its bid succeeds, a person familiar with the matter said.

Elliott, which owns about 8.5 percent of Novell stock, would also try to run the company more efficiently and bring about $400 million in cash that Novell holds off shore to the U.S., said the person, who asked not to be identified because Novell hasn’t agreed to the bid. Elliott may also try to find a buyer for Novell’s business that specializes in an open-source operating system, the person said.

“Our intent is to own Novell,” New York-based Elliott said in an e-mailed statement. “We have absolutely no plans to sell any business units.”

The Inquirer wrote about it shortly afterwards:

Novell will be asset stripped

SOURCES AT the investment fund Elliot have confirmed that if it is successful in its bid to take over Novell, the outfit will be asset stripped.

Its Netware networking-software unit will be flogged and the company will look for a buyer for its SUSE Linux operation.

Elliott Associates, the vulture fund, later issued a denial:

As the week was ending, rumors were swirling that the hedge fund suitor of Novell, Elliott Associates, which last week offered $1bn net of cash to take over the perennially struggling software maker, was going to start selling off its target’s assets if it clinches a deal.

[...]

In response to the Bloomberg story, Elliott put out a statement two hours after the market closed denying the rumors. “The story that Bloomberg ran today was inaccurate. Elliott has made no statement with respect to its intent regarding Novell. Elliott wants to own the company. Elliott has no plans to sell any business units and to report anything else would be erroneous.”

So what was the Bloomberg report based upon?

The Novell-faithful folks were also quick to point out this “mistake”, whose correction came through PRNewsWire. In Associated Content, one fan of SUSE wrote: “Why Microsoft Needs to Buy Novell or Has Its Own Linux Distro?” [weak English]

I personally do not want to see SUSE to die. I ‘dabbled my feet’ with linux was SuSe 6.0. I actually bought the boxed version of that software (since installing, downloading, configuring, etc were a major pain in those days). Among all linux I tried that time (which was probably early 1990s), SUSE was always the winner in detecting any hardwares I throw into. All other distros just simply failed, usually, in detecting the ‘soft modem.’ Remember that era? If not, soft modem is that annoying modem that can be used with Windows driver only. You would be lucky to run your beloved 1.44k band modem if someone did the hack for linux driver of it.

Taking a moment to look a few days back (before the Bloomberg report and the subsequent denial), Paul Rubens believes that sale of Novell’s assets is inevitable.

The enterprise Linux space has suddenly got very interesting following the news that a bunch of sharp-suited New Yorkers have made an offer to buy SUSE Linux’s parent company, Novell. Whether or not they succeed, there can be little doubt that it’s cheerio and night-night for Novell, a business that has been doomed since, let’s be brutally honest here, everyone stopped buying NetWare.

The offer, from hedge fund outfit Elliott Associates, was for $5.75 per share, valuing Novell at a shade under $2 billion. But bearing in mind that the company has vast cash piles in various currencies, worth about $950 million, and the offer values Novell’s businesses at around $1 billion greenbacks.

There is clearly a takeover expected, so the question is, by who?

Macquarie Securities initiated coverage on takeover target Novell (Nasdaq: NOVL) with an Outperform rating and $7.50 price target.

Microsoft's buddy reckons that Novell will be sold and in Boston (near Novell’s headquarters) this is pointed out too. The takeover gets mentioned in many other places that we mentioned before (we try to produce an exhaustive list of links to articles) and negative speculations about Red Hat are fueled by FUD from Canonical's Matt Asay, leading to articles like this one.

But there are fears that if Novell goes, that could be the first domino which damages the commercial outfits based on Linux.

The next target might be Red Hat. Some think that if Novell’s SUSE Linux business finds its way into Oracle’s or VMware’s or IBM’s paws, it will be hard for Red Hat to remain viable as a stand alone company.

This is only based on CNET, which they think is a reliable news site. When they say “there are fears” they only refer to Matt Asay, who used to work for Novell and thus compete strongly against Red Hat. This whole thing also feeds the shameless Microsoft booster Preston Gralla [1, 2]. His disinformation is self explanatory and public admiration of Microsoft very much expected.

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

What Else is New


  1. Links 20/8/2014: Linux Event, GNOME Milestone

    Links for the day



  2. Corruption Watch: Microsoft Lobbying Designed to Kill Chile's Free Software Policy and Promote Microsoft With Subsidies, More Dirty Tricks Emerge in Munich

    icrosoft is systematically attacking migrations to GNU, Linux and Free software, using dirty tricks, as always



  3. Vista 8 Such a Disaster That Even Microsoft Cannot Cope With It, Vapourware Tactics Start Early

    Microsoft's Windows-powered services are failing and Windows gets bricked by Microsoft patches, whereupon we are seeing yet more of Microsoft's vapourware tactics (focusing in imaginary, non-existent versions of Windows)



  4. On BlackBerry and Other Patent Trolls

    A roundup regarding patent trolls, starting with the bigger and latest joiner, BlackBerry's new patents apparatus



  5. Links 19/8/2014: Humble Jumbo Bundle 2 Betrayal, Mercedes-Benz Runs GNU/Linux

    Links for the day



  6. BlackBerry -- Like Microsoft Nokia -- Could be the Next Patent Proxy Troll

    BlackBerry is restructuring for patent assertion (i.e. trolling) in the wake of some alliances with Microsoft



  7. After Microsoft's Soft Bribe Some Non-Technical Deputy Does Not Like Free Software, Microsoft-Linked Media Responds to This Non-News by Making Bogus Claims of Munich Leaving GNU/Linux (Updated)

    The subversive forces that have secretly been attacking Munich over its migration to GNU/Linux (Microsoft press, Gartner, and even HP) are back to doing it while China and Russia follow Munich's lead



  8. Gates Foundation CFO Quits and Debate About Revolving Doors Recalled Amid Systematic and Shrewd Bribery of Public Officials

    More officials step out of the Gates Foundation and their destination is not known yet; Gates continues to corrupt the public sector with his money so as to increase personal gain at taxpayers' expense



  9. Links 19/8/2014: GNU/Linux Raves and Alternative to Proprietary Voice Chat

    Links for the day



  10. Links 18/8/2014: Linux 3.17 RC1, Escalation in Ferguson

    Links for the day



  11. Gartner Group Advocates Using Defective Software With Back Doors

    Despite strong evidence that Microsoft has been complicit in illegal surveillance, Gartner continues to recommend the use of Windows and other espionage-ready Microsoft software



  12. The Microsoft Patent Trolls: Android Extortion, Vringo Versus Google, and Intellectual Ventures

    Roundup of news about patent aggression by Microsoft and some of its proxies



  13. Links 16/8/2014: Microsoft Linux, US Government Turns to Free Software

    Links for the day



  14. Links 15/8/2014: Reiser4 in Headlines Again, GNOME and KDE Events Finish

    Links for the day



  15. Links 14/8/2014: Kernel Summit Coming, KMix on KDE Frameworks 5

    Links for the day



  16. Shameless Microsoft Spin is Blaming China for Microsoft's Misconduct and Back Doors While Justifying Massive Losses in Hardware (Made in China)

    A new look at how Microsoft-friendly media takes negative Microsoft news and turns that news into some kind of scandals where Microsoft is the victim



  17. Microsoft Spin in the Media Evokes 'New Microsoft' and New Back Doors

    Some new examples of Microsoft boosters rewriting history, characterising Microsoft as a FOSS champion, and generally weak/shallow reporting on Microsoft's audio/video surveillance software



  18. Links 13/8/2014: GNU/Linux as Winner, New Snowden Interview

    Links for the day



  19. Reader's Article: Skype Spying Reaches New Levels of Blatant

    Forced 'upgrades' of Skype give useds [sic.] of Skype more than they asked for



  20. The Problem is Software Patents (and Scope), Not Patent Trolls Who Abuse Them Just Like Large Corporations

    Reminder of the dangers of losing sight of the real patent problem, which is the patents themselves, not necessarily those who use them



  21. Fraud in the USPTO and CAFC Helped Apple Launch Frivolous Patent Lawsuits Against Linux/Android, Based on New Withdrawals

    Inherent corruption in the US system has aided Apple's assault on east Asian electronics giants that use Linux at the core of their products



  22. Investigation Reveals That USPTO is Corrupt, Time to Abolish It or Annul Nearly a Million Patents

    Corruption is found at the heart of the USPTO and the USPTO works hard to hide it, despite attempt by whistleblowers to bring this corruption to light



  23. Links 13/8/2014: Red Hat Enterprise Linux 6.6 Beta, Tizen in Watches

    Links for the day



  24. Links 12/8/2014: Chromebooks Surge, OpenGL in the Headlines

    Links for the day



  25. Bill Gates is Profiting By Diverting Public Money to His Own Pocket and Reducing Wages

    Gates' lobbying for companies he is an investor of and for lower salaries inside companies he is investing in (and managing) comes as no surprise



  26. Microsoft is Still Attacking Open Standards, So Khronos Does Not Need the Microsoft Moles

    Having attacked the industry's document standard OpenDocument Format (ODF) while pretending to have 'embraced' ODF Microsoft is now pretending that it is eager to support OpenGL



  27. Another Depressing Look at the Patent Systems in the US and in Europe

    A roundup of news about patent monopolies and in particular the immense power wielded by giant multi-national corporations that steer the debate and acquire trans-Atlantic monopolies on ideas, always against citizens' interests



  28. Links 11/8/2014: DEFT 8.2, Linux Mint on Debian Stable

    Links for the day



  29. Links 9/8/2014: Knoppix 7.4.0, GNU Linux Libre 3.16

    Links for the day



  30. Links 8/8/2014: Qt a Separate Company Again, KDE Frameworks 5.1 Released

    Links for the day


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