08.30.10
Takeover of Novell Seen as “Less Likely” by S&P Analyst
Summary: Standard & Poor’s analyst Jim Yin believes that Novell is less likely than before to sell itself, but he does not rule out this possibility
A couple of days ago we showed that Novell had been downgraded following poor results [1, 2]. Microsoft booster Eric Savitz quotes further from the same person who downgraded Novell:
Yin thinks that a slowing global economy and weakness in the company’s legacy products also were contributing factors to the weak results. He cuts price target on the stock to $5, from $6, and writes that a potential takeover of the company now appears “less likely.”
Novell is the lifeline which holds together Mono, Moonlight, and MonoDroid, which is the Microsoft-approved way of taking over mobile and embedded Linux. On the other hand, Novell is essential to the SCO case and as steward of “UNIX” it’s in the unique position where any takeover is extremely dangerous. █
dyfet said,
August 30, 2010 at 6:03 am
It might simply be the case that everyone who has looked at Novell has found nothing of any real value to purchase, whether in part or in whole. At best, they have a small pile of cash, but, as noted, the legal encumbrances and the rather poor sell-ability of their constituent parts might be enough to keep even many of the vultures away outside of Elliot.
Dr. Roy Schestowitz Reply:
August 30th, 2010 at 6:38 am
It estimated the worth or Novell at about a billion (if you deduct a pile of cash). Red Hat is worth over $6.64 billion at the moment.
Dr. Roy Schestowitz Reply:
August 30th, 2010 at 6:39 am
s/or/of/