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. 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



  2. 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



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

    Links for the day



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

    Links for the day



  5. 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



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

    Links for the day



  7. 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



  8. 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



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

    Links for the day



  10. 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



  11. 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



  12. 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?



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

    Links for the day



  14. 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



  15. 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



  16. 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



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

    Links for the day



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

    Links for the day



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

    Links for the day



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

    Links for the day



  21. 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



  22. 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



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

    Links for the day



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

    Links for the day



  25. 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



  26. 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



  27. 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



  28. Links 6/10/2014: Linux 3.17, OpenELEC 4.2.1, FreeBSD 10.1 RC1, Debian 8.0 Beta 2 Released

    Links for the day



  29. Links 4/10/2014: WebOS is Back

    Links for the day



  30. Corporate Media Repeats Microsoft Propaganda About Patents by Claiming Microsoft Makes Billions From Android

    Microsoft is spreading the myth that Android is not free (and is in fact very expensive) while its staff and boosters continue to deceive the public in other ways


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