03.13.10

Vulture Fund Rumoured to be Planning to Break Novell Apart, Vultures Deny the Claim

Posted in FUD, GNU/Linux, Microsoft, Novell, Red Hat, SLES/SLED, Ubuntu at 6:53 am by Dr. Roy Schestowitz

Vulture

Summary: Disagreement between the press and the hostile acquirer as to whether or not Novell would stay in tact

NOVELL is at a stage of uncertainty and state of denial because it’s likely to be acquired soon [1, 2, 3, 4, 5, 6, 7]. The Novell-faithful people watch with concern as their Novell skills/certifications are at stake and Novell’s BrainShare, which is just days away, has "uncertainty" written all over it. Attendants are likely to bring up questions about the company’s short-term plans. Novell’s PR team promotes the event [1, 2], whereas analysts at Ovum claim that “The end is nigh for Novell”:

After years of acquisition rumors, last week Novell received a buy-out offer from hedge fund Elliott Associates (EA). Whether the offer succeeds or not, Novell is likely to end up in pieces.

[...]

Novell’s parts are more valuable than its sum

Novell’s board is likely to reject the current offer before Novell’s annual conference, BrainShare, starts on 21 March. It can keep rejecting EA’s offers, but it cannot stop EA from going directly to Novell’s shareholders. Should EA be successful, it is likely to pocket Novell’s cash then split the company and sell its constituent parts.

This news report from Bloomberg (also published in BusinessWeek and later corrected slightly) claims that Novell will be torn apart by Singer and his minions, who are only interested in money and not in Novell’s staff, products, and customers.

Elliott Associates LP, the fund manager that made an unsolicited $2 billion offer for Novell Inc., may consider selling the NetWare networking-software unit if its bid succeeds, a person familiar with the matter said.

Elliott, which owns about 8.5 percent of Novell stock, would also try to run the company more efficiently and bring about $400 million in cash that Novell holds off shore to the U.S., said the person, who asked not to be identified because Novell hasn’t agreed to the bid. Elliott may also try to find a buyer for Novell’s business that specializes in an open-source operating system, the person said.

“Our intent is to own Novell,” New York-based Elliott said in an e-mailed statement. “We have absolutely no plans to sell any business units.”

The Inquirer wrote about it shortly afterwards:

Novell will be asset stripped

SOURCES AT the investment fund Elliot have confirmed that if it is successful in its bid to take over Novell, the outfit will be asset stripped.

Its Netware networking-software unit will be flogged and the company will look for a buyer for its SUSE Linux operation.

Elliott Associates, the vulture fund, later issued a denial:

As the week was ending, rumors were swirling that the hedge fund suitor of Novell, Elliott Associates, which last week offered $1bn net of cash to take over the perennially struggling software maker, was going to start selling off its target’s assets if it clinches a deal.

[...]

In response to the Bloomberg story, Elliott put out a statement two hours after the market closed denying the rumors. “The story that Bloomberg ran today was inaccurate. Elliott has made no statement with respect to its intent regarding Novell. Elliott wants to own the company. Elliott has no plans to sell any business units and to report anything else would be erroneous.”

So what was the Bloomberg report based upon?

The Novell-faithful folks were also quick to point out this “mistake”, whose correction came through PRNewsWire. In Associated Content, one fan of SUSE wrote: “Why Microsoft Needs to Buy Novell or Has Its Own Linux Distro?” [weak English]

I personally do not want to see SUSE to die. I ‘dabbled my feet’ with linux was SuSe 6.0. I actually bought the boxed version of that software (since installing, downloading, configuring, etc were a major pain in those days). Among all linux I tried that time (which was probably early 1990s), SUSE was always the winner in detecting any hardwares I throw into. All other distros just simply failed, usually, in detecting the ‘soft modem.’ Remember that era? If not, soft modem is that annoying modem that can be used with Windows driver only. You would be lucky to run your beloved 1.44k band modem if someone did the hack for linux driver of it.

Taking a moment to look a few days back (before the Bloomberg report and the subsequent denial), Paul Rubens believes that sale of Novell’s assets is inevitable.

The enterprise Linux space has suddenly got very interesting following the news that a bunch of sharp-suited New Yorkers have made an offer to buy SUSE Linux’s parent company, Novell. Whether or not they succeed, there can be little doubt that it’s cheerio and night-night for Novell, a business that has been doomed since, let’s be brutally honest here, everyone stopped buying NetWare.

The offer, from hedge fund outfit Elliott Associates, was for $5.75 per share, valuing Novell at a shade under $2 billion. But bearing in mind that the company has vast cash piles in various currencies, worth about $950 million, and the offer values Novell’s businesses at around $1 billion greenbacks.

There is clearly a takeover expected, so the question is, by who?

Macquarie Securities initiated coverage on takeover target Novell (Nasdaq: NOVL) with an Outperform rating and $7.50 price target.

Microsoft's buddy reckons that Novell will be sold and in Boston (near Novell’s headquarters) this is pointed out too. The takeover gets mentioned in many other places that we mentioned before (we try to produce an exhaustive list of links to articles) and negative speculations about Red Hat are fueled by FUD from Canonical's Matt Asay, leading to articles like this one.

But there are fears that if Novell goes, that could be the first domino which damages the commercial outfits based on Linux.

The next target might be Red Hat. Some think that if Novell’s SUSE Linux business finds its way into Oracle’s or VMware’s or IBM’s paws, it will be hard for Red Hat to remain viable as a stand alone company.

This is only based on CNET, which they think is a reliable news site. When they say “there are fears” they only refer to Matt Asay, who used to work for Novell and thus compete strongly against Red Hat. This whole thing also feeds the shameless Microsoft booster Preston Gralla [1, 2]. His disinformation is self explanatory and public admiration of Microsoft very much expected.

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

This post is also available in Gemini over at:

gemini://gemini.techrights.org/2010/03/13/hostile-acquirer-re-breakage/

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. Links 24/6/2021: End of Akademy 2021 and Good News From SCOTUS (About PTAB)

    Links for the day



  2. Links 23/6/2021: TeXmacs 2.1 and Blender LTS Support

    Links for the day



  3. How to Install and Then Use NetSurf as a Web Browser for the User-Centric Web, Not 'GAFAMNet'

    Today we take a quick look at what it's like to actually install NetSurf (some distros, like some Xfce-based ones, are bundled with it); we then take it for a spin



  4. Shifting Back to Fundamentals and Basics of the World Wide Web (and Gemini)

    Gemini protocol or simplified Web might be the way to go; it's easier to maintain, secure, and it's vastly better in terms of performance



  5. First I Came

    Time after time people will be reminded — or learn the hard way — that self reliance and avoidance of disappointment typically requires self-hosting, proper standards, free software, and simplicity, not outsourcing, large frameworks, and other kinds of unnecessary complexity



  6. IRC Proceedings: Tuesday, June 22, 2021

    IRC logs for Tuesday, June 22, 2021



  7. Time for Linus Torvalds to Enforce and Protect His Brand From Misuse by His Employer, the So-called 'Linux' Foundation

    The gross misuse or misapplication of the brand "Linux" is being highlighted in this video about the latest examples. It has gone too far; whether Linus Torvalds wishes to rock the boat that’s the so-called ‘Linux’ Foundation is totally up to him, but it might help if people contact him directly, especially longtime users and proponents of GNU/Linux.



  8. Links 23/6/2021: WordPress 5.8 Beta 3 and More Openwashing by LF

    Links for the day



  9. Links 22/6/2021: KDE Plasma 5.22.2, FreeBSD 13.0 Compared to DragonFlyBSD 6.0

    Links for the day



  10. “Linux Foundation Partners With Microsoft” Again

    Jim "Open Source Loves Microsoft" Zemlin shows (or rears) his face again, and as usual it’s just more promotion of marketing rubbish and openwashing of Microsoft (several new partnerships with Microsoft announced just hours ago)



  11. Links 21/6/2021: NVIDIA’s DLSS and Most Beautiful GNU/Linux Distributions

    Links for the day



  12. Neil's Misgovernment

    The GNOME Foundation has one member of staff fewer; the attack on the founder/father of Free/libre software activism and GNU (the "G" in GNOME) failed and backfired spectacularly



  13. IRC Proceedings: Monday, June 21, 2021

    IRC logs for Monday, June 21, 2021



  14. Virtual Injustice -- Part 14: How Mandatory ViCo Became the “New Normal”

    How mandatory ViCo hearings gradually became the "New Normal" at the EPO



  15. Links 21/6/2021: Rocky Linux 8.4, IPFire 2.25 - Core Update 157, and SUSE Linux Enterprise 15 SP3

    Links for the day



  16. There Are Bigger Scandals Than Revisionism and Brand Dilution at the Linux Foundation

    There are some misconceptions that need tackling; back in February (more than 4 months ago) the so-called 'Linux' Foundation decided to associate with yet another controversial drive that has nothing to do with Linux; some people think it's a new thing and leap to conclusions



  17. Techrights Video Gallery Without JavaScript

    Some of the improvements made this morning to the gallery of recent videos



  18. IRC Proceedings: Sunday, June 20, 2021

    IRC logs for Sunday, June 20, 2021



  19. Links 21/6/2021: Linux 5.13 RC7, IRC.com by Freenode

    Links for the day



  20. Virtual Injustice -- Part 13: Let the Games Continue…

    "It would be nice to think that the events of 28 May have given the Enlarged Board pause for thought."



  21. Links 20/6/2021: Akademy 2021 Underway and Linux Foundation Blasted

    Links for the day



  22. EPO: Fake Patents, Fake (Paid-for) Patent Coverage, and Fake Awards for Public Relations Purposes

    The media has been thoroughly corrupted, patent legitimacy has been severely damaged (far too many European Patents aren't in compliance with the EPC anymore), and Team UPC is trying to undermine the EPC and turn Europe into another Texas



  23. Changes in IRC and New Features Over Gemini Protocol or the World Wide Web

    We examine more closely some of the latest changes in the site and the capsule (Web and Gemini, respectively); we show that it’s possible to keep abreast of IRC using nothing but a text editor, a Gemini client… or even the command line alone



  24. IRC Proceedings: Saturday, June 19, 2021

    IRC logs for Saturday, June 19, 2021



  25. We Need and Deserve a Saner Patent System in Europe

    The laughing stock that the patent system, the patent law firms, and patent media became (over the past few years) must be replaced; at the moment we have a cabal connected to a bunch of criminals running the entire show and the public understandably grows impatient (at least people who are sufficiently informed; the criminals have already intimidated and bribed a lot of the media and they're still bribing more of it, as we shall demonstrate later today)



  26. [Meme] IRC Wars in a Nutshell

    In terms of large IRC networks, we’re in trouble (unless we self-host) because they seem to be dividing themselves along political lines rather than anything technical or something of an on-topic/relevant substance. Using networks for Free software projects/organisations to push one’s political agenda is not acceptable because it’s starting to seem like in IRC space, FN has become the Front Nationale (French) and LC is Liberal Coalition. Both FreeNode and Libera Chat have managed to turn from technical platforms into political parties, in effect using technical networks (intended for technical projects) to push someone's political agenda and thus misusing them for personal gain. There’s no free lunch. As it turns out, FreeNode’s new owner (Andrew Lee) has just outed himself as a huge Donald Trump supporter who speaks of “these fuckers who stole that shit” (he meant the election, which he insists Trump actually won in 2020).



  27. IBM Handles More Removals of Signatures From Its Hate Letter Against Richard Stallman

    Less than a day ago IBM processed a request for removal (from its hate letter); as someone put it in a letter to us, also less than a day ago: “When all of this started in 2019, the Red Hat GNU developers showed off their colours. The best way to attack an organisation is from the inside. Using GNU developers was a dead giveaway. Google and Microsoft are very much on the team with IBM. I believe they’ve made headway into the Free/Libre software community and have persuaded senior Debianties to go along with them.” That same message, from an anonymous GNU maintainer, said: “The strategy to target major distributions is clear and present danger. I’m not sure what arguments of persuasion are being used, but I’m pretty sure their main tool is currency. RMS needs a lot of strategic support from experts who will rally to the Free Software cause. He needs great lawyers, some corporate minds, and intelligence specialists.” Sometimes it seems or feels like by simply buying Red Hat (the staff) IBM infiltrated the GNU Project and now it is vainly making claims like 'GNU is IBM' and thus IBM et al can command/tell the FSF who should run FSF, not only GNU. Such entryism isn’t hard to see; “An open letter in support of Richard Matthew Stallman being reinstated by the Free Software Foundation” has meanwhile garnered 6,758 signatures. The opposite letter is only decreasing in support (signatures lost).



  28. Links 20/6/2021: Debian GNU/Linux 10.10 “Buster” Released and LF Revisionism Resumes

    Links for the day



  29. The EPO's Enlarged Board of Appeal Has Already Lost the Case in the Court of Public Opinion

    Personal views on the sordid state of the Enlarged Board of Appeal (EBoA), which by extension bodes poorly for the perception of independence in every Board of Appeal (BoA); the patent tribunals have been captured by patent maximalists who either stack the panels or intimidate judges into ruling in a particular way



  30. Virtual Injustice -- Part 12: Carl Josefsson – Down But Not Out!

    António Campinos still controls Josefsson, who controls all the judges, so in effect all the legal cases (including some about European software patents) are manipulated by the Office the judges are supposed to judge


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts