Bonum Certa Men Certa

Paul Singer Still Goes After Novell



Summary: The 'vulture fund' responds to Novell's first rejection of a takeover, which still leaves room for more offers to be made

FOR background about what seems like Novell's imminent sale, have a look at:

  1. Novell May be Going Private, Hedge Fund Has Cash
  2. Analyst Expects Microsoft Bid to Buy Novell
  3. Ron Hovsepian Receives Another Large Lump of Cash as Novell Sale Looms
  4. GNU/Linux-Savvy Writers View Elliot Associates as Bad Neighbourhood
  5. Firm Behind Novell Bid Has Shady Past, Could be Tied to Microsoft (Paul E. Singer's 'Vulture Fund')
  6. Simon Phipps: “Seems Even With Microsoft’s Support Novell Couldn’t Cut It”
  7. Vulture Fund Still the Only Bidder for Novell


Not much has changed since then, but now they talk about the price. Here is the press release and some initial coverage [1, 2, 3]. It seems like an issue of price.

Novell Inc. said a $5.75-a-share acquisition offer from Elliott Associates LP is “inadequate” and undervalues the maker of Linux operating-system software.

Novell’s board is reviewing its alternatives, which include a stock repurchase, joint ventures, a cash dividend, a recapitalization and a sale of the company, the company said in a statement.


In the mainstream press, a lot of attention is paid to the word “inadequate”, which is included in many headlines [1, 2, 3, 4, 5, 6, 7]. It does not indicate an idealogical issue but one that's to do with Novell being undervalued. According to the VAR Guy, Novell "Welcomes Other Bidders".

Translation: Novell is willing to listen to more takeover bids. But is that really news? Shouldn’t Novell’s board always be looking for alternatives to enhance stockholder value?

Also, Novell’s rejection of the Elliott Associates’ bid mentions “Novell’s growth prospects.” Hmmm… Is Novell really a growth company? Top-line financial results suggest no. But individual product groups — particularly SUSE Linux — suggest yes.


There is a push for Novell to offer itself, maybe to another company like Microsoft. "Elliott welcomes Novell's call to sell company," says Reuters. There is an official statement.

Investment fund Elliott Associates, which had previously bid for Novell Inc (NOVL.O), said it welcomed the business-software maker's decision to sell itself.

"We welcome the Board's decision to conduct a sale of the company, which we believe is the best way to maximize shareholder value," Elliott said in a statement.


It sounds rather fishy. It's almost as though they just want another company to pick Novell up. Additionally, since Singer's shell has almost 10% of Novell (in terms of shares), the surge of the stock has already made him money and publicity.

More in the New York Times (blogs): "Elliott Welcomes Novell’s Move to Put Itself in Play"

Elliott Associates said Monday that it was encouraged that Novell would consider selling itself after the business software maker rejected Elliott’s unsolicited $2 billion takeover offer as “inadequate.”

“We welcome the board’s decision to conduct a sale of the company, which we believe is the best way to maximize shareholder value,” Elliott said in a statement. “Our goal is to acquire Novell, and our cash offer to acquire all of the company’s shares for $5.75 per share provides shareholders with a substantial premium.” It added, “We look forward to the process and to actively pursuing an acquisition of the company.”


Novell is up on expectations of a sale [1, 2], which investors perceive as a positive thing. As we stressed before, Novell is just bargaining. The initial rejection does not mean that Novell opposes a takeover. It's like an animal's love dance.

Recent Techrights' Posts

Sloppy Reporting About Slop, or How The Register MS Lowers Its Standards
Maybe the management isn't even aware of this
IBM's Strategy: Cull 'Expensive' Workers, Replace Them With Cheaper Ones
So far we saw not even one rebuttal or challenge to the claim of Red Hat layoffs scheduled for tomorrow
The Goal of Coopetition Assumes You're Friends
it will never work with Microsoft
Seductive Mirage or Allure of Complex, Proprietary Coffee Machines (or Similar White Elephants)
Software is a lot like those things
 
Links 10/08/2025: Webrings, “AI Sunglasses” and “AI Eyeglasses”, US Administration Intensifies Attacks on Science and Research
Links for the day
Sometimes Newer is Worse
We generally need to reject this dumb notion that "old" means bad
The Code Used to Make Techrights Fits on a Seventh of a Floppy Disk (or 100KB When Compressed)
For the sake of comparison I've just downloaded the latest version of WordPress. The ZIP file is 27.2MB in size, or ~27,200KB.
What They Tell Young Programmers
Coding in 2025
Simpler is Better When Simple is Enough
Over-complicating things to "sell" new versions is so 1990s
Links 10/08/2025: From Social Control Media to Prison, New Examples of Windows TCO
Links for the day
If You Attack Somebody Too Much You Legitimise and Strengthen That Somebody
at the end those attacks add up to a "martyr" status
The Man Who Helped Microsoft Kill Linux is Trying to Delay Our Lawsuits Against Him
By conservative estimates, and based on court documents submitted by them, they're prepared to spend over a million dollars on lawyers, fighting against me and my wife
Gemini Links 10/08/2025: Gen Con 2025 and Framework Laptop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 09, 2025
IRC logs for Saturday, August 09, 2025
The Register MS (Microsoft) or The Register AI (Slop)?
What a slopfest!
Is Red Hat About to Give the Boot to GNOME People Who Helped Microsoft 'Secure' (Monopolised) Boot?
It was always a dumb idea to play along with Microsoft's hardware mischief
Sales of Windows on PCs (Windows Licences) Go Down
Microsoft has a big problem in its hands
The Hype That Microsoft and The Register MS (Among Others) Promote Helps Stage DDoS Attacks on Free Software Sites
Microsoft is, to put it bluntly, pure evil
Links 09/08/2025: Putin Allegedly to Visit Alaska (Which He Deems Part of Russia), Mike Tyson Sued for Copyright Infringement
Links for the day
Slopwatch: Linux Journal, LinuxSecurity, and Google News With Its Slopfarms of Choice
SEO spam, made with LLMs
Follow the Money: The Register MS Gets Paid to Promote "Hey Hi" Ponzi Scheme/Hype, Some Fake 'Articles' Might Be Composed by LLMs Already
paid to promote slop
Gemini Links 09/08/2025: Rethinking Aliases and Posting on Gopher vs. the Web
Links for the day
Links 09/08/2025: Apollo 13 Astronaut Jim Lovell Dies, Slop Future Bleak
Links for the day
After Shutting Down Studios, Divisions, Applications (e.g. Skype) Microsoft is Also Shutting Down 'Apps'
Cuts all around as layoffs persist this month, Microsoft tries to get many people to resign, and debt skyrockets
Most of Geminispace Can Probably Fit on a CD-ROM or a DVD (the Textual Part)
If one excludes very large capsules and ones that contain non-textual contenty
Eventually UEFI 'Secure Boot' Will be Dropped (Users Will Demand Its Removal and Boycott Its Pushers)
we expect OEMs will just listen to users
The Register MS: We Know Slop is a Bubble and Mindless Hype, But We Get Paid to Participate
Call out the culprits
Hate Mail From Anonymous Cowards
if this persists, we'll need to escalate
There Are Probably Over a Million Pages in Geminispace
there are two many limitations which merit a mention when it comes to assessing magnitude
Informal Open Letter to the Lawyer of the Microsofters (on Who's Funding the SLAPPs Against Techrights)
Whenever I ask about the funding they try to change the subject and act all aggressive
Microsoft Lunduke is Just Provoking People for Provocation's Sake
Be forewarned and remember where this guy came from: Microsoft
Besieged by Plagiarists Who Play With LLMs and Image Fusions
We really need to exercise or use our collective voice to oppose Serial Sloppers
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 08, 2025
IRC logs for Friday, August 08, 2025
Gemini Links 09/08/2025: Water Painting and Political Violence
Links for the day
Slopwatch: LLM Sloppers in Google News, LinuxSecurity, and More
they also perpetuate some falsehoods as the LLMs lack any comprehension
Links 08/08/2025: China King of Plastics and US Dictator Plans to Meet Russian Dictator
Links for the day
Gemini Links 08/08/2025: Cracking a Family Member's Password and Overdose of Slop
Links for the day
Red Hat's Latest Talent Hunt, Day Ahead of Mass Layoffs, is Yet Another Microsoft Executive
Red Hat will apparently commence mass layoffs early this coming Monday
Links 08/08/2025: "Quit Facebook" and High Cost of Microsoft/Windows Shown Again ("BlackSuit")
Links for the day
Good Morning, Readers of The Register MS
Things The Register MS could (but does not) cover this morning
Why Gemini Protocol Has a Bright Future
Maybe Gemini Protocol's promise becomes more appealing as the Web turns to slop and bloat
It's a Lot Easier to Participate in the Unethical System Than to Oppose Injustices in It
Going after powerful and high-budget interests is never easy
Microsofters Filed Two SLAPPs Against Us, Now They Cannot Keep Up With Judges' Orders
For over 4 months already their facilitator in London has been under investigation by British authorities because of what's being done to my wife and I
Censorship Regarding Red Hat Layoffs
Talk about this? They'd rather not.
Struggling to Cut Costs, Microsoft Continues Shutting Down and Cancelling Stuff This Month
There are August layoffs at Microsoft
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 07, 2025
IRC logs for Thursday, August 07, 2025
Fake 'Linux' Articles, Written by Bots to Take Traffic Away From Real Articles
LLM slop helps replace information with junk or misinformation
When Google's Googlebombing of "Gemini" Was Not Enough; They Now Also Googlebomb "Gemini Space"?
We know GAFAM not only worries about Gemini Protocol but also attempts to 'infiltrate' Geminispace
The Register MS Promotes Microsoft Slop, Assumes All Readers Use Microsoft Windows
Microsoft really dominates the site
Gemini Links 08/08/2025: KDE/Qt Development and What's Missing From "Retro"
Links for the day