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 9/2/2016: Linux in Robotics, Hyperledger Project

    Links for the day



  2. Besieged Benoît Battistelli Mimics 'Damage Control' Tactics of FIFA or Blatter as More Judges Start Getting Involved in EPO Scandals

    Rumours and a new rant from Battistelli reinforce suspicions that actions are being organised behind the scenes, possibly as part of an upcoming, high-level campaign to unseat/dethrone Battistelli, who has become a reputational disaster to the European Patent Office (EPO), much like Sepp Blatter at FIFA



  3. Several Political Parties Directly Challenge the European Patent Office for Ignoring the Law, Not Obeying Court Orders

    Politicians make it crystal clear that the EPO, despite its unique status, cannot just raise its nose at the rulings of courts of law, definitely not in Dutch territory where the EPO operates



  4. Even the Legal Community is Upset at Benoît Battistelli for the Damage He Did to the EPO

    A recent article from lawyers' media (in German) speaks of the great damage (or mess) left by its current president, who has become somewhat of a laughing stock and growingly synonymous with farcical trials even in the circles of stakeholders, not just his own staff



  5. EPO Union (SUEPO) Getting Busted: “More and More People are Joining the Union, but Fewer and Fewer People Dare to Take on Leading Positions There.”

    The union-busting actions taken by EPO management in collaboration with Control Risks (for weak accusations against staff representatives) and FTI Consulting (for 'damage control') as described in a recent article, in the words of SUEPO lawyer Liesbeth Zegveld



  6. Microsoft's Copyrights- and Patents-Based Attacks on GNU/Linux Carry on

    The SCO case is still going on and Microsoft has just signed a patent deal with GoPro over its FOSS-based software, relating to “certain file storage and other system technologies”



  7. The EPO's Benoît Battistelli is the Dictator Who Can No Longer Dictate Like He Used to

    The European Patent Office's mechanism of oversight is starting to work just a little because, based on a new report from Juve, Battistelli is now reluctant to make proposals that would prove unpopular among delegates



  8. La Más Detallada Explicación (hasta ahora) de ¿Qué esta mal con la OEP?

    La insistencia de la OEP que permanece arriba de la ley no sólo est bajo fuego en los medios pero también esta siendo desafiada basado en personas familiares con la aplicabilidad de la ley a organizaciones internacionales.



  9. Links 8/2/2016: Vista 10 Nags Help GNU/Linux, Nautilus Updated

    Links for the day



  10. The European Patent Office “is Acting as Though the Law Does Not Apply to It.”

    An article from Nieuwsuur which provides the words of Liesbeth Zegveld (for SUEPO) and Guillaume Minnoye (for the European Patent Office), reaffirming the EPO's bizarre notion that it is above the law, even in the face of human rights violations and a court ruling against the EPO



  11. Microsoft-Connected FRAND Lobbying (Software Patents Against Free/Open Source Software) in Brussels

    Anti-Free/Open Source software (FOSS) talking points and FRAND (anti-FOSS) lobbying groups in Brussels as seen by proponents of FRAND, who also worked for Microsoft



  12. Latest Propaganda From the EPO's Management an Effort to Make the EPO the Tool of Megacorporations

    A quick roundup of some of the latest spin and paid-for (bought) coverage that helps introduce a distorted patent system whose beneficiaries are not European (or even people)



  13. 'Aversion to Change' Propaganda From the EPO Echoes or Parrots Lenin and Stalin

    The out-of-control EPO management is trying to fool the media by blaming staff representatives for getting fired, simply because they stood up to a highly abusive and megalomaniacal dictator



  14. The Gates Foundation Subjected to Criticism, But Over a Decade Too Late

    Reckoning and accepting the fact that even some in the media now openly speak about Bill Gates' corrupting influence in everything, including politics



  15. Links 8/2/2016: Zenwalk 8.0 Beta 2, Q4OS 1.4.7

    Links for the day



  16. SIPO (China's Patent Office) Taken Over by Patent Maximalists

    A look at China's race to the bottom (decline in quality) when it comes to patents, assuming quite wrongly that quantity is more important than quality and severe penalties for perceived infringement will spur innovation



  17. The Alice Case Continues to Smash Software Patents (This Time OpenTV's); Will the EPO Ever Pay Attention?

    The potency or the grip of software patents in the United States is quickly eroding, but the EPO continues to act as though software patents are legitimate



  18. EPO Staff Responds to Team Battistelli's Expansion to Include French Economic Propagandist on the Payroll

    With strings attached (like string puppets of Battistelli in various units including the Investigative Unit), can the new Chief Economist, who is French and paid by Battistelli, ever be trusted?



  19. UPC: To Understand Who Would Benefit From It Just Look at Who's Promoting It (Like TPP)

    The UPC, which is designed to aid patent trolls and aggressors (and their lawyers), is still being advanced by the EPO and some misinformed (but loyal to these former groups) politicians



  20. Trolls Molestos: Rovi (del famoso Angry Birds) Ayuda al Más Largo Troll de Patentes de Microsoft Intellectual Ventures (Corregido)

    Alguna vez conocido como hacedor de juegos y más tarde como vigilancia en masa en jugadores, Rovi ahora se ESTA ALIANDO CON EL MÁS GRANDE TROLL DE PATENTES



  21. Estadísticas de Invalidación de Patentes y Costos de Litigación de Patentes (incluso si son falsas) Muestran que la Esfera de Patentes y los Estándares de Examinación son un Probleman, No Sólo en Los Estados Unidos

    Demasiadas falsas patentes que no deberían haber sido otorgadas en primer lugar y fraudulentes jucios de patentes que terminan en favor del acusado sirve para mostrar el costo externo (o externalidad) cuando set trata de un bajisímo sistema de patentes que se esfuerza en otorgar muchas patentes irrespectivamente de su mérito.



  22. The 'Offenses' of EPO Staff Representatives Boil Down to Truth-Telling

    Dutch television examined the documents of the mock 'trials' against SUEPO leaders and concluded that whistle-blowing (i.e. exposing abuses by EPO management), not misconduct, is the reason for overzealous dismissals



  23. Rumours About Dismissal of Benoît Battistelli and New Letter From Union Syndicale Federale Blasting Battistelli's Behaviour

    hings have been heating up since the dismissal of staff representatives at the European Patent Office (EPO) and some even spread rumours about withdrawal/dismissal of the EPO's President



  24. VirnetX Case Against Apple Shows Not the Problem With Patent Trolls But With Software Patents

    What the media really ought to be talking about after the high-profile VirnetX case, rather than obsess about the status of Apple or patent trolls in the Eastern District of Texas



  25. Diápositivas de Nueva Charla Explican la Connección Entre la Corte De Patentes Unitarias (UPC) y Patentes de Software

    Benjamín Henrion habló el pasado Domingo acerca de las patentes de software europeas -una presentación que habla de la Corte Unitaria de Patentes, por la que la OEP aboga sin cesar y que es lo que significa para las patentes de software.



  26. Las Políticas de Microsoft Alienan Incluso a los Hinchas Más Acérrimos de Microsoft, Incluyendo Pro-Microsoft Web Sites

    El agresivo comportamiento de Microsoft y su BAJA CALIDAD DE PRODUCTOS dejan algunos de sus últimos restos de ´hinchas´ descorazonados y molestos.



  27. Links 6/2/2016: CoreOS Rocket 1.0, Scientific Linux 7.2

    Links for the day



  28. Maybe It's Time for Class Action Lawsuits Against Microsoft for Forced Vista 10 'Upgrades', Which Were Definitely No Accident

    The sheer arrogance of Microsoft, which silently changes the operating system on people's computers (without their consent), makes lawsuits imperative, not just a possibility



  29. Readers' Article: A Strange Conspiracy of Silence in the German Media (Part II)

    Željko Topić's allegedly dark background, which includes a suicide, a retreat of potential witnesses, German funds in Topić's private bank account and several more interesting bits



  30. Links 5/2/2016: Wine 1.9.3, Slackware 14.2 Beta 2

    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