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

03.25.10

Novell for Sale

Posted in Finance, GNU/Linux, Novell at 4:54 am by Dr. Roy Schestowitz

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.

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

2 Comments

  1. Needs Sunlight said,

    March 25, 2010 at 12:59 pm

    Gravatar

    Someone in Redmond just yanked Miguel’s chain and he’s made noises that have gotten attention. A lot of people are projecting what they want to hear onto his latest noise rather than reading for themselves. He’s not apologizing. He’s lamenting that he hasn’t been able to help shove Microsoft products everywhere.

    He only sounds off when Bill needs some noise, so it could be that Novell is really needing to avoid the spotlight. Or C++ and Java are getting too much praise.

    Dr. Roy Schestowitz Reply:

    Right now it’s the Ps (Python, PHP, Perl) that seem to be getting a lot of praise and especially usage. Sadly, they are often used for Fog Computing.

    M&M (Microsoft and Miguel) fight the Ps using Silver/Moon Lie and *Spark (akin to EDGI).

What Else is New


  1. Links 23/5/2016: GNOME 3.22, Calculate Linux 15.17

    Links for the day



  2. 'Celebrity' Patent Trolls and the Elusive Battle Against Patent Trolls (or Eastern District of Texas Courts) Rather Than Software Patents

    Some of last week's more important reports, which serve to demonstrate how the system is attempting to tackle a side-effect of software patents rather than the patents themselves (their irrational scope)



  3. The Circus of Patent 'Reporting' (by Omission) on the Subject of Software Patents in the US and USPTO Bias

    look at some of the latest oddities in the US patent system and much of the reporting about software patenting (more or less monopolised by those who profit from it, not harmed by it)



  4. IP3 Demonstrates That Today's Patent Systems Devolve Into a Conglomerates' Game, Won't Protect the Mythical Small Inventor

    Multinational corporations bring together their shared interests and steer the increasingly-inseparable patent systems according to their needs and goals, but has anyone even noticed?



  5. Disrupting Battistelli's Distracting Propaganda: EPO Staff to Protest Again in About a Fortnight

    The overly extravagant (waste of money) EPO European Inventor Award will have to compete for media attention with thousands of EPO staff (in all EPO sites) marching in the streets to protest against the EPO's abuses



  6. Corrupting Democracy? Growing Frequency of Rumours That the EPO's President Battistelli is 'Buying' Votes of Small Member States

    Several sources suggest that rather than appease the Administrative Council by taking corrective action Battistelli and his notorious 'circle' now work hard to remove opposition from the Administrative Council, especially where this is easier a task to accomplish (politically or economically)



  7. [ES] Los Mitos de la EPO ‘Calidad’ de Patentes y de ‘Creación’ de Patentes: Basados en Ventas de Cafe y Trauma

    La carrera hacia el fondo, o la ridícula asumpción de Battistelli de que otorgar más y más patentenes más rápidamente (e.g. usando PACE) sería beneficióso a largo término, puede guíar al final colapse del valor de la EPO y la pérdida de su lárgamente ganada reputación a nivel mundial



  8. Links 22/5/2016: Systemd 230, Debian Installer Alpha 6

    Links for the day



  9. EPO Patent 'Quality' and 'Patent Creation' Myth: Capsule-Based Coffee Sales and Trauma

    The race to the bottom, or Battistelli's ludicrous assumption that granting more and more patents faster (e.g. using PACE) would be beneficial in the long run, may lead to the ultimate collapse of the EPO's value and demise of its long-earned reputation worldwide



  10. Guest Post: How Vista 10 Imposes Itself on Users of Windows

    A reader's experience being nagged by Microsoft, as documented and explained by this reader



  11. [ES] El Notorio Tirano de la EPO, Benoît Battistelli, Se Reune Con Otros Tiranos, Reportes de Que ‘Limpia’ el Consejo Administrativo

    El régimen de Battistelli, talvez la fuente de verguénza más grande, alegadamente está “cortejándo países pequeños/corruptos para asegurárse de que los delegados que votarón contra él serán remplazados”



  12. [ES] Comentadores Anónimos Debaten Si la EPO de Battistelli Puede Revocar las Pensiones de Empleados Que Se Atreveen — GASP — a Buscar Empleo Alternativo

    Una mirada a las causas de desesperación e imensa presión en la EPO, donde las pensiónes pueden ser cortadas como medio de represália y la gente puede ser negada empleo aún después de dejar la Oficina Europea de Patentes (EPO)



  13. [ES] Otra Casi Vacía Presentación de la EPO en La Hague

    El propagandístico “estudio social” de Battistelli (básicamente un montón de engañosas afirmacionesdisfrazadas como ‘investigación’) ayuda a demostrar que los empleados de la EPO no tiene absolutamente fe en la gerencia



  14. Links 21/5/2016: Manjaro Linux RC, Flock 2016 Schedule

    Links for the day



  15. USPTO Ignores a Lot of Cases Against Software Patents to Justify Resumption of More Software Patenting

    The US patent system (USPTO) is so obsessed with granting as many patents as possible -- even bogus patents in areas that are no longer patent-eligible -- that its guidelines are further perturbed and whose appeals board is massively overwhelmed/overworked/understaffed



  16. Notorious EPO Tyrant, Benoît Battistelli, Meets Other Tyrants, Reportedly 'Cleanses' the Administrative Council

    The Battistelli regime, perhaps the biggest embarrassment of Europe right now, is allegedly "courting smaller countries to make sure the delegates who voted against him will be replaced"



  17. Links 20/5/2016: Purism Tablet, ChromeOS PCs Outsell 'Mac'-Branded PCs

    Links for the day



  18. CAFC Rules Against Software Patents But Witness With Horror the Silence From Patent Lawyers (Bias by Omission)

    In an effort to protect software patents in the United States, where these patents came from in the first place (and continue to spread from), patent lawyers pretend not to see cases where software patents get invalidated and instead focus on the rare exception



  19. It's All Just Artificial Distractions From EPO Management, 'Yellow' Union Comes Under Scrutiny Again

    What's happening inside the EPO these days and what meaningless rubbish the management of the EPO would rather have the media obsessed with



  20. Anonymous Commenters Debate Whether Battistelli's EPO Can Revoke Pensions of Dismissed Employees Who Dare -- GASP -- Find Alternative Employment

    A look at causes for desperation and immense pressure at the EPO, where pensions can be cut as means of reprisal and people can be denied employment even after they leave the European Patent Office (EPO)



  21. Australian Productivity Commission's Research Calls for Ban on Software Patents, Davies Collison Cave Calls for Complaints Against This Finding

    As the push against software patents grows in Australia, much to the chagrin of Australian software developers, Davies Collison Cave (patent law firm) publicly calls for opposition, calling its side "the truth" and pretending it represents "Australian innovators."



  22. Links 19/5/2016: Wine-Staging 1.9.10, Android N

    Links for the day



  23. Another Almost Empty EPO Presentation at The Hague

    The propagandistic "social study" of Battistelli (basically a lot of misleading claims disguised as 'research') helps demonstrate that EPO staff has absolutely no faith in the management



  24. [ES] La UPC un Ataque No Sólo Contra el Público Europeo Pero También Contra los Empleados de la EPO

    El despido de los empleados actuales de la EPO y el remplazo del interés público por intereses corpórativos (intereses de grandes compañíás del otro lado del charco) es todo lo que la UPC realmente es



  25. Links 18/5/2016: ReactOS 0.4.1, KWayland in KDE Frameworks

    Links for the day



  26. Endless Harmonious Self-Congratulatory Praises From Self-Serving Law Firms in the Wake of Just One Pro-Software Patents Decision From CAFC

    The court that brought software patents to the United States has defended a software patent and patent lawyers want us to believe that this is an historic game-changing decision (potentially to be appealed by Microsoft, if Microsoft actually wanted to fight software patents)



  27. If Battistelli Stayed and UPC Became a Reality, Patent Quality at the EPO Would Get a Lot Worse

    The vision that Team Battistelli has for the EPO is an ENA-inspired neoliberal and corporatist vision that would bring the legitimacy of the system down to zero and the European economy to the brink of collapse



  28. Two Months Down the Line, Battistelli Has Done None of What the Administrative Council Told Him to Do; He Should be Sacked Next Month

    An informal but timely progress report shows that Battistelli has made no progress whatsoever and all the injustices remain in tact, in spite of the warnings from the Administrative Council (mid March)



  29. [ES] Al Abundar Patentes de Sofware, Free/Open Source Software Pierde, Mientras que los Abogados de Patentes Ganan Más que Nadie

    Impuestos al desarrollo — o el costo relaciónado con el caos de patentes — rápidamente creciéndo cada vez mas y en el caso del Free software rápidamente excede las ganancias por distribución, que usualmente es $0



  30. [ES] La UPC es Guerra de Classes (los Ricos contra Todo el Mundo), He Aqu el Porque de la Militarización de la Oficina Europea de Patentes

    En cara a la resistencia a contróversiales y frecuéntemente antidemocráticas, ilegales y posiblemente actos críminales o felonías, los chácales de Battistelli recurren a ataques de decapitación (atacando o torturando figuras claves) y armándose alrededor de sí misma — todo esto mientras falsamente acusando otros de portar armas o recurrir a la agresión


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