08.28.11
Having Trashed Novell, Paul Singer Moves on to Brocade
Summary: The ruthless man behind Elliott Management Corp. is reportedly agitating Brocade
CORPORATE RAIDERS are a parasite of society and they have a very negative impact on everything around them. Nobody wants them except those who use them to destroy a competitor, such as Yahoo! or even Novell. In prior years we wrote many posts about the man who put Novell on sale against Novell's will. His name is Paul Singer, but he hides behind a firm called “Elliot”.
According to several news reports, Mr. Singer is still on his warpath of destruction (for profit). “Elliott Gains Opening to Press for Change With Brocade Stake” says one headline and in all the mentioned article Novell is mentioned too, including this one, stating:
Elliott Management Corp., the investor that pushed Novell Inc. to sell itself last year, amassed an 8.5 percent stake in Brocade Communications Systems Inc. (BRCD), gaining an opening it could use to agitate for change.
The man who should be under investigation for his unethical operations from tax havens, but he is celebrated as a rich man and he is still out for new prey. This is a sad testament that helps show why the bubble economy has had no barriers. For more context see:
- Novell May be Going Private, Hedge Fund Has Cash
- Analyst Expects Microsoft Bid to Buy Novell
- Ron Hovsepian Receives Another Large Lump of Cash as Novell Sale Looms
- GNU/Linux-Savvy Writers View Elliot Associates as Bad Neighbourhood
- Firm Behind Novell Bid Has Shady Past, Could be Tied to Microsoft (Paul E. Singer’s ‘Vulture Fund’)
- Simon Phipps: “Seems Even With Microsoft’s Support Novell Couldn’t Cut It”
- Vulture Fund Still the Only Bidder for Novell
Whether it’s Carl Icahn or Paul Singer, the US citizenry needs to realise that this type of activities is far more dangerous/costly than foreign and domestic terrorism. This is akin to some kind of “financial terrorism”, but those who commit those acts are never punished. The corporate press usually glorifies these people. █
stewb said,
August 28, 2011 at 9:04 am
Too funny. Aren’t corporations supposed to grow sales and profits, not to mention shareholder value? You’re obviously not a BRCD shareholder. The real parasite here is Michael Klayko and his management team that have sucked the value right out of this company year after year. They are way over compensated (stock options) versus performance. The stock price is at 2008/2009 crash levels for crying out loud.
People like Mr. Icahn and Mr. Singer recognize bad management and weak board of directors that don’t do their job. I say go Elliot!