Bonum Certa Men Certa

Novell for Sale

NYSE for sale



Summary: Many news reports confirm that Novell's intention was to say that it will be sold given the right offer

EARLIER this week we showed that Novell avoids talking too much about putting itself up for sale. For those in need of some background, here are previous posts on the subject:



We have already explained the significance of this. Novell is said to have UNIX and it's handling both SCO and Microsoft in court (WordPerfect case). SJVN, a GNU/Linux expert, is asking: "Now what, Novell?" [for brevity, we mostly quote headlines and use italics to mark them]

There's nothing like starting a technical conference, like Novell's BrainShare, off with a bang. Or, in this case telling Elliot Associates' unwelcome offer of not quite $2-billion for the company that Novell has no interest in selling out, not for that little anyway.

I think this was a smart move by Novell's management. I think if Elliot Associates were to buy Novell it would end up killing the company and its Linux distributions: SUSE Linux and openSUSE.


The Microsoft boosters from Redmond say that "Novell [is] Up for Grabs".

Maybe Elliott Associates will get its prize after all, and maybe there's no other vendor out there that wants to swallow Novell. That sure wouldn't be very exciting, though. We're hoping for an old-fashioned battle here. Let the siege begin!


It says: "Let the siege begin!"

Those boosters from the 'Microsoft press' think it's just a game.

Another publication that's always Microsoft sympathetic asks: "Too Little, Too Late For Novell?"

The news from Utah goes like this:

During the opening keynote Monday, chief executive officer and president Ron Hovsepian addressed what he called the "elephant in the room," saying Novell's board of directors over the weekend rejected an unsolicited bid by Elliott Associates to acquire it for roughly $2 billion.


We have already covered this. It does not contradict the many reports which say that Novell is up for sale. A blog in the New York Times says that "Elliott Welcomes Novell’s Move to Put Itself in Play"

In rejecting Elliott’s bid, Novell said Saturday that the hedge fund’s offer “undervalues the company’s franchise and growth prospects.”

Instead, Novell said its board was considering alternative ways to increase its value to its shareholders, including an outright sale of itself.


Other reports from the news say:

1. Novell Seeks Substitutes After Casting Off Elliott’s Acquisition Bid

Novell Inc. on Saturday discarded a bid by hedge fund Elliott Associates LP aimed at buying the company for about $1.8 billion, on Monday. It explained that the deal would have turned down the company's value in the international economy, thereby hindering its growth.

However, the software company set itself on sale seeking a boost in the shareholder value.


2. Suitor says will still try to buy Novell

Elliott Associates LP said Monday it still wants to acquire Novell Inc. despite the company's rejection of the hedge fund's initial offer.


3. After rejecting bid, Novell open to sale

Elliott yesterday released a statement praising Novell’s willingness to consider a sale and reaffirming its offer.

Officials from Novell and Elliott declined to comment further.


4. Novell Up after Rejecting $1.8B Hedge Fund Offer, Remains on Sale

ZDNet wonders "What's it [Novell] worth and who's buying?"

From AP we have a report that appeared in the Boston press and also in Forbes. The headline says that Novell "explores options".

For those who want more information about the man behind Elliott, BNET has it.

I looked at the question when reading about the bid for Novell (NOVL) by investment firm Elliott Associates. Looking into the company and its president, Paul E. Singer, I came across this map, from Muckety.com, that shows connections between Singer and a number of conservative political groups...


Readers can see the image. There is some politics in there, as we showed a couple of weeks ago.

Minyanville.com describes Singer as "riding in on its white horse" (which is extremely funny because he is a predatory vulture).

2. In any case, I was happy to see Elliott come riding in on its white horse to try to rescue what’s probably a restless shareholder base. But $5.75 a share? If I were on the Novell board I'd probably hold out for a higher number, too.

3. But keep in mind that there are risks to that. You'll remember that hardball didn't work so well for Yahoo (YHOO). Also it’s not like Novell is expected to blow the doors off the barn on the earnings front this year. I wouldn't be surprised to see the two parties continue their mating dance in the weeks ahead, and for some sort of a deal to come to fruition.


The same site compares Novell's behaviour to that of Yahoo!, which was hijacked after many bids and aggressive tactics that really ought to be illegal.

More coverage of this can be found in:



Novell Inc. (NOVL US): The maker of Linux operating-system software said yesterday a $5.75-a-share acquisition offer from Elliott Associates LP is “inadequate” and undervalues the company.


Blue Harbour, one of Novell's larger shareholders, so far agrees with Novell's action.

Clifton Robbins, CEO of the private investment firm Blue Harbour Group, which own a 4% stake in Novell, echoed Hovsipian's message in a statement that said "the company's value significantly exceeds Elliott's proposal."


Here is the official word from PRNewsWire:

"We agree with Novell's management and Board of Directors that the company's value significantly exceeds Elliott's proposal. Blue Harbour has been in active and constructive discussions with Novell's management in recent months on various alternatives to create and unlock value, and we support the company's decision today to pursue a formal review process with the assistance of its advisors."


Other shareholders were also supportive of Novell's action (they probably expect Novell to sell for more money), so the stock rose as the week began. To give examples of coverage:

1. Wall Street Breakfast: Must-Know News

Novell says no to Elliott bid. On Saturday, Novell (NOVL) rejected Elliott Associates' $1.8B bid to take it private, calling the offer "inadequate," and saying it "undervalues the company's franchise and growth prospects." Some have questioned whether Novell is really worth that much, but others say it could be worth even more considering its $1.82B in assets. Novell plans to initiate a review of alternatives, including a share buyback, cash dividend, joint ventures, recapitalization, alliances or an outright sale.


2. In The Papers 22 March

The paper also notes that US software firm Novell has rejected an unsolicited takeover offer from hedge fund Elliott Associates, calling the USD5.75 a share cash offer "inadequate". Elliott, which owns about 8.5 percent of Novell, announced its USD2 billion offer earlier this month. Novell said its board had authorised a review of alternatives for realising value for shareholders, including share buy-backs, dividend payments, a joint venture or alliance, or the sale of the company.


3. Benzinga’s Top Pre-Market Gainers (SONS, NOVL, WSM, LGF, GENT)

Novell, Inc. (NASDAQ: NOVL) climbed 4.96% to $5.92 in the pre-market session. Novell Inc on Saturday, March 20, 2010, rejected an unsolicited bid by hedge fund Elliott Associates LP to buy NOVL for about $1.8 billion, saying the deal undervalued Novell and its growth prospects. In the previous trading session, NOVL closed at $5.64. NOVL has surged over 36% in the last year.


4. Novell Jumps Early on Rejection of Weak Acquisition Bid (NOVL)

5. Novell Rejects Elliott Associates $5.75 Per Share Takeover Proposal (NOVL)

6. Zanett, Novell: Early Volume Plays

Novell (NOVL) jumped by 29 cents, or 5.1%, to $5.93 shortly after the opening bell Monday after the software company rejected an unsolicited bid from Elliott Associates as "inadequate."


7. A good month for Novell Inc.; NOVL, ASIA, MFE, SYMC

8. Novell: The Trend Continues Up (NOVL) (also in Fox)

9. Novell, Inc (NOVL) Stock

10. Closing Bell: Health Care Doesn't Kill the Bulls (C, SOMX, NOVL, PALM, T, AIG, NBG)

Novell Inc. (NOVL) rejected the Elliott private equity takeover bid as 'inadequate' but it is now exploring strategic alternatives and assess its options, including a potential sale. Shares were up close to 5% at $5.91 shortly before the closing bell.


11. Stocks in the News: PepsiCo, Google, Tiffany (same text here)

Novell (NOVL) shares jumped 4.8% after the company on Saturday rejected an unsolicited bid by hedge fund Elliott Associates to buy the company for about $1.8 billion, saying the deal undervalued Novell and its growth prospects.


12. The Ticker

Shares of business software maker Novell Inc. rose 5 percent after the company rebuffed a $2 billion offer over the weekend from investment fund and shareholder Elliott Associates.


13. Sector Update: Technology Shares Higher As Google Stops Censoring Chinese Search Results

Novell (NOVL) shares climbed $0.27, or almost 4.8%, to $5.91 on news over the weekend that a $2 billion buyout offer from private-equity firm Elliott Associates was "inadequate" and undervalued the company, MarketWatch reported. Elliott’s offer valued Novell’s stock at $5.75 a share. Novell’s board of directors is exploring several options, included a sale of the company, according the the report.


14. Micron, Seagate Lead Tech Stocks Higher

Novell rose 4.4 percent after the company said a takeover offer from a hedge fund is inadequate.


15. Notable Mergers and Acquisitions of the Day 03/22: ISIL/TWLL, NMM/NM, NOVL

Novell's Board is committed to enhancing value for Novell stockholders and believes that an exploration of alternatives is in the best interests of the Company and its stockholders. Novell's Board noted that there can be no assurance that this will result in any agreement or transaction. The Company does not intend to disclose developments with respect to any of these alternatives unless and until the Board has approved a specific course of action.


Here is a fascinating explanation of why Novell made the announcement on Saturday.

Take for example, the Saturday announcement by Novell rejecting an unsolicited takeover bid by Elliott Management. Novell’s news release announcing this act was issued at 11:13 a.m. on Saturday. This is unusual as these announcements typically come during the weekday, after the market opens or closes. Perhaps the Novell board met on Friday.

In such a case, was Novell’s Saturday release a mistake or a mere lack of attention to the unusual nature of this act? In the background is the question of whether Novell intentionally buried this release. Alternatively, was Novell’s board actually working so hard that it was deliberating on Saturday? In its press release, the Novell board also announced it would explore strategic alternatives for the company, including a sale.

The Saturday release may show Novell’s particular vulnerability since its shareholders can act by written consent to remove directors without cause at any time. It may also show that they are worried. And ultimately, none of this may mean much at all; it could be just a detail or a mistake, perhaps an unimportant one at that.


"It may also show that they are worried," says the New York Times writer.

Novell's rejection of this first bid was also mentioned in other articles such as [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17]. Having looked at them, there is nothing especially interesting there, but in summary, this journey of bids for Novell has only gotten started.

Comments

Recent Techrights' Posts

The Free Software Foundation (FSF) Has Un-cancelled the Best People, Just in Time for the Big 4-0
Mr. Oliva should have been there all along (since 2019)
Most "Modern" Technology Makes You Slower and Dumber
Because proprietary software makes you worse off
"What Comes After Free Software?" Wrongly Insinuates We've Reached the Goal (Prison is Not the Goal)
The oil tycoons use similar tactics against environmentalists, giving them fake "wins"
Making More Work Space
I learned the hard way that less is more in circumstances where more means distraction
MAHA is a Lie, Public Officials Never Valued Citizens' Health (They Still Value Private Businesses, Their Sponsors)
Reject demagogues
New Techrights Turns 2
Today starts the third year of the SSG-based Techrights
What Scares Them the Most is Independent News Sites That They Cannot Control and Censor
Wikileaks was a good example of this
If You Don't Control Your Online Platform, Then Someone Else is Controlling You
be (or become) independent
The Solicitors Regulation Authority (SRA) Has a Policy on Racism and Sexism
In then future we'll show the misogyny and racial slurs
Links 22/09/2025: Murdochs Might Join Fentanylware (TikTok) 'Investors' (Masters), United Kingdom Recognises Palestinian Statehood
Links for the day
 
Brett Wilson LLP Has Just Been Sued (by Their Own Clients!)
Vladimir and Alla Yanpolsky sued Brett Wilson LLP in BL-2025-001167 at the end of last week
The Complaint About Brett Wilson LLP - Part II - UK SLAPPs for Americans, SLAPPs for Profit
Brett Wilson LLP has a track record of this kind
Mayday: Optus emergency calling crisis
Reprinted with permission from Daniel Pocock
Links 23/09/2025: Massive Data Breach, Slop Versus Productivity, and Vista 11 Update Breaks Things Again
Links for the day
Code of Censorship
Extortion is peace
Free Software Foundation (FSF) Has a New Press Kit for the Weekend After Next Weekend (40th Anniversary)
miles better than social [sic] media [sic] quips, moderated by narcissists and oil tycoons.
Microsoft Had Two Waves of Mass Layoffs This Month (That We Know of) and It'll Get Worse for Microsoft Soon
Will the axe fall again by month's end?
Gemini Links 23/09/2025: Happy Equinox, Photronic Arts, and Perception Cognition
Links for the day
Lessons We've Learned After 17 Years of American Hosting
GAFAM is "all-in" with the "Trump agenda"
Back to Normal Now, We Plan to Do More In-Depth Series (or Multi-part Stories)
Articles (or series thereof) that contain philosophy are important to us
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 22, 2025
IRC logs for Monday, September 22, 2025
Microsoft Media is Panicking Amid Mass Layoffs Every Month, H-1B Fees, and "Seattle’s Tech Scene in Trouble"
In "late stage Microsoft", copyleft becomes proprietary
The Next Wave of IBM/Red Hat Layoffs Being Discussed Already
Red Hat is sort of disappearing the way Tivoli did
Oracle Started This Year With Slop. Then It Stopped.
Passing fads are like this
Distros That Run on PCs Made 20 Years Ago and Don't Use Systemd
Betas for now
The Complaint About Brett Wilson LLP - Part I - Abusing British Women on Behalf of American Men Who Abuse American Women
Transparency is important to us, so we've decided to make this series
Slopwatch: Google News and the Evident Slopfarm Infestation
This is what people get about Linux when they query Google for Linux
Gemini Links 22/09/2025: Esperanto Music History and Apps For Android
Links for the day
Links 22/09/2025: More American 'Censorship' (Retaliation for Journalism), Cheeto "Might Be Losing His Race Against Time"
Links for the day
The Blob Slop
Give me more words, give me some text
The 50-Pound Note Experiment and the "War on Cash"
Britain is actually seeing a rebound in cash payments, and it's not a temporary phenomenon
Slopwatch: Blaming the Victims for Microsoft's Failures and Plagiarising Phoronix
That's what Google has been reduced to: slop and slopfarms
Links 22/09/2025: Breaches, Windows TCO, and Arrests
Links for the day
Gemini Links 22/09/2025: Rabbit Hole and DeGoogling Fairphone
Links for the day
Links 22/09/2025: Russian War Planes Invade NATO Airspace While Dihydroxyacetone Man Escalates Attack on Free Speech Because of Critics
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, September 21, 2025
IRC logs for Sunday, September 21, 2025
Links 21/09/2025: "Hey Hi" (Hype) Under Fire, Fakes Identified; Tesla Burns Family
Links for the day
Google's Software is Malware and Malware in Mobile Devices
Originally posted by Rob Musial
Links 20/09/2025: Hegemony Coming to a Close, Luigi Mangione Ruled Not Terrorist
Links for the day
Gemini Links 21/09/2025: "Charlie Kirk Was a Hateful Piece of Shit" and Slop Code Attempted by Microsofter
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, September 20, 2025
IRC logs for Saturday, September 20, 2025