Bonum Certa Men Certa

Further Signs That Novell Will Sell in Parts, Stock Rebounds

Novell sale



Summary: Novell employees give more signs that sale of Novell assets is still on the table

ABOUT A DAY AGO, one former employee of Novell said that they should sell parts of the company. Based on prior reports [1, 2, 3], this appears to be Novell's plan and one anonymous comment suggests that Novell has already engaged in this "behind the scenes".



Based on a new update from the comments in CNET:

As I mentioned over on BNET (http://industry.bnet.com/technology/10002269/novell-considering-being-acquired/), Novell has phrased their denials carefully. They said to me that they had "no current plans to sell the company." When I pointed out that this statement wouldn't cover a consideration to sell, early stage negotiations, or sales of parts of the company, the spokesman said, "I stand by the statement." I read that as interested and open if not closing a deal today, which is far different from saying that it's not for sale.


That is precisely what we said when Novell first made this statement. Here are more explicit details:

I talked briefly with a Novell spokesman and am waiting for more information or a comment. But entering pure speculation for a moment, given the relative importance of the Microsoft deal, could a Microsoft purchase of Novell be possible?

[UPDATE: Novell has filed an 8K with the SEC stating that the company has "no current plans to sell the company." Of course, that doesn't mean that management is not considering a sale and it also leaves open the room for selling anything shy of the entire company. It also is not a statement that management has no interest in selling all or part of the company in the interest of shareholders. I asked a company spokesman about this, who said that they stand by the statement. So, we're pretty much left with the word from DiFucci.]


As a recap, here are some old reports that came after the rumour. From the Boston press:

Novell approach

Novell Inc., the Waltham-based Linux software maker, may be willing to sell itself to boost shareholder value, JPMorgan Chase & Co. said after meeting with Chief Financial Officer Dana Russell.


Bloomberg has identical text in two aggregate reports:

Novell Inc. (NOVL US): The second-largest U.S. seller of Linux software said it has no current plans to sell the company. The shares rose 10 percent on June 19 after JPMorgan Chase & Co. said the company may be willing to sell itself.


Fox Business more or less repeats the report from Reuters and so does this site. It turns out that Reuters may have only parroted the SEC filing from Novell. The company was made so nervous by the rumours that it carefully phrased a short statement and pushed it out via the SEC as soon as possible.

Software and services company Novell Inc. (NOVL: News ) Friday said in a filing with the Securities and Exchange Commission that it currently has no plans to sell the company. Novel also said that it is continuing to operate in the best interest of its shareholders.


Bloomberg later came out with identical bits of text in reports about Novell's slide:

Novell Inc. (NOVL US) lost 4.7 percent to $4.46 for the largest decline since May 29. The second-largest U.S. seller of Linux software said it has no current plans to sell the company. The shares rose 10 percent on June 19 after JPMorgan Chase & Co. said the company may be willing to sell itself.


More on the news can be found in:

i. Oil Drops 4%; Valero, Conoco, Exxon Fall

Novell, Inc (NOVL) lost 4.9% or 23 cents to $4.45 after the Linux software developer denied its plan to sell part of the company or businesses. On Friday, JP Morgan analyst had said that the company is exploring to sell part of the businesses in a research note.


ii. Novell Falls After Denying Reports of a Sale of the Company

After rising more than 10% on Friday on news of a potential sale of the company, shares of Novell (NASDAQ:NOVL) have given back just over 5% after the seller of Linux software said, in a filing with the SEC, that it has no current plans to sell the company.


The pro-Microsoft Motley Fool had something to say about Novell too:

Pay attention to the SEC's entire definition, not just the stock price. Going solely on price would wrongly categorize billion-dollar companies Sprint Nextel (NYSE: S) and Novell (Nasdaq: NOVL) as penny stocks.


In summary, it's reasonable to expect Novell to announce sale of parts of the company. Its investors are mostly okay with that.

Comments

Recent Techrights' Posts

This Week's Letter to António Campinos About Mean-Spirited Line Managers at the European Patent Office (EPO)
Seems like a way to get rid of staff. Some will resign in anger.
 
Search Engine Market Share Worldwide Shows How Badly Microsoft's Chatbot Strategy (Hopes) and Vapourware Have Failed
Bing, which was marketed as the forefront "product" for chatbots (Microsoft paid the media a lot of money for hype campaigns), gained nothing at Google's expense
[Meme] Demoralising and Putting Down Your Staff
unproductive and dangerous approach
Software in the Public Interest (SPI) & Debian obfuscated structure fooled suicide victim's family: the ultimate example of bad faith
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 21, 2024
IRC logs for Wednesday, February 21, 2024
Gemini Links 22/02/2024: What We Pass On and HTTP Header Viewer
Links for the day
Manuel Estrada Sainz (ranty), Andres Garcia (ErConde) & Debian Deaths overworking
Reprinted with permission from Daniel Pocock
GNU/Linux Rising to 8% of Desktops/Laptops in Jordan?
what statCounter shows
[Meme] If Iraq Launches an Investigation Into How Microsoft Bought OpenAI Without Paying for It
fake "money" from Microsoft
Windows Has Fallen to 13% Market Share in Iraq (It was 100% Just 15 Years Ago), GNU/Linux Rose Sharply in Recent Years
In recent years Iraq was developing its own GNU/Linux distro
Springtime is Next, Here's What We Plan for March and April
This month and next month we expect to publish something unique about EPO abuses every day
Studying the Freedom of firefox-123.0.tar.bz2
The "F" in Firefox
Abraham Raji, Jens Schmalzing & debian-private cover-ups after deaths, accidents, suicides
Reprinted with permission from Daniel Pocock
Microsoft Bribes, Keeping Regulators at Bay
crime and corruption
[Meme] The Quotas Came From Above
EPO targets
EPO Talent Planning & Architecture is Another Attack on EPO Staff and the Central Staff Committee (CSC) Explains Why
ignore the flowery words
[Meme] Just Following Orders From "The Fu**ing President" António Campinos
Salary? OBEY!
Links 21/02/2024: China Working on West-less Tech Future, More Bounties on Patent Troll Leigh M. Rothschild (Which IBM et al Failed to Dismantle at the Root)
Links for the day
Links 21/02/2024: Encryption Backdoors Deemed Not Legal, Decentralised Web Under Attack
Links for the day
Games:Steam Audio as Free Software, Hazard Pay, ChipWits, and More
7 stories for today
Julian Assange, Wikileaks & Debian-private
Reprinted with permission from Daniel Pocock
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 20, 2024
IRC logs for Tuesday, February 20, 2024
Links 21/02/2024: Microsoft Sued for Monopolistic Policies, More Layoffs Planned for Next Month
Links for the day
Gemini Links 20/02/2024: Time Management System and Communications
Links for the day
Techrights' Statement on Julian Assange Verdict (February 20th, 2024) - Updated Throughout the Day
Techrights observes today's disturbing attempts to extradite a journalist for committing acts of journalism
Links 20/02/2024: More GAFAM Layoffs, Assange Missing From His Trial for Heath Reasons (the UK's Own 'Navalny Treatment')
Links for the day
[Meme] But the Boss Said...
"The illegal we do immediately. The unconstitutional takes a little longer."
An EPC-Violating Patent Granting Process: Unlawful Orders, According to the Central Staff Committee of the European Patent Office (EPO)
One can hope there's another strike (work stoppage) planned
In Cuba, Windows Dips to 'Market Share' of 16.8% and GNU/Linux Keeps Growing (Now ~6% of Desktops and Laptops)
it's harder for Microsoft to push Cubans around
[Meme] Code of Conduct (CoC): Too Much Power in the Wrong Hands
Might makes right?
[Video] For Software Freedom Avoid Free Bait
do not take any of this for granted
[Video] Trouble at Mozilla Means Trouble for Firefox and for the Web
The era of the open Web is ending
[Video] Microsoft Layoffs: It's Worse Than the Media Makes It Seem
Microsoft's fraudulent accounting
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, February 19, 2024
IRC logs for Monday, February 19, 2024
Gemini Links 20/02/2024: Kids Cannot Write, Misfin-Server, and More
Links for the day