Novell Dogged by Expectations of Its Sale, Results to Disappoint
- Dr. Roy Schestowitz
- 2010-08-11 09:52:47 UTC
- Modified: 2010-08-11 09:52:47 UTC
Summary: Novell is informing investors and clients in advance that its financial results will be terrible
ACCORDING to this new
press release from Novell, there are tough times over there. As
Reuters puts it [
1,
2]:
Business software maker Novell Inc (NOVL.O) cut its third-quarter revenue outlook due to customer uncertainty surrounding its plan to explore strategic alternatives, including a sale of itself.
In March, the company spurned a $2 billion takeover offer from investment fund Elliott Associates, calling the bid inadequate. Its board instead decided to review alternatives, including a share buyback, cash dividend, joint ventures, recapitalization, alliances or an outright sale.
Timothy Prickett Morgan has
an excellent article about it. "What a surprise," he writes, "A company rejects an unsolicited takeover bid and its board of directors announces that the struggling company is looking at all alternatives, including selling itself or breaking itself up. And then sales unexpectedly go south."
The
Wall Street Journal speaks about
customer uncertainty and this is also covered in:
Jefferies
says: “we remain concerned over the company's deteriorating fundamentals and pace of customer defection.”
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