Buck passing. IT support people have heard of it
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Novell tells Elliott to go away
NOVELL'S BOARD OF DIRECTORS has told the vulture capitalists at Elliott to go forth and multiply with its offer to buy the company.
Elliot offered $5.75 a share for the company and is expected to asset strip it, dismember it and sell off the parts if its bid succeeds and it takes over.
However in a press release Ronald Hovsepian, Novell's president and CEO, said that the offer is "inadequate" and under-valued the company.
So why did Novell take so long to reject Elliott's offer? Apparently it was working out ideas to keep the shareholders from demanding that it take the bid.
The ideas that it has apparently come up with include a return of capital to stockholders through a stock repurchase or cash dividend, strategic partnerships and alliances, joint ventures, a recapitalization and potentially a sale of the company.
One of the larger shareholders, Blue Harbour Group, has backed the rejection of Elliott's bid. A spokesman said that Novell's value significantly exceeds Elliott's proposal.
Novell's share price might also go either way as a result of the outcome of SCO v. Novell trial that's still ongoing in a US District court in Utah. While many expect Novell to walk away a winner, shareholders might have been getting a bit uneasy about how complicated the trail has been getting.
There's more, a lot more, at Groklaw. µ
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I was not surprised that the Novell BOD rejected the Elliott Associates bid of $2B for the company. Elliott Associates, which is a hedge fund, was only interested in what they could realize as profit from selling off Novell's assets.
Novell has a number of products and services scheduled for released in 2010 including: Pulse, Identity Manager 4, ZENworks Configuration Management 11, Novell Cloud Security Service and a framework for doing computing workload management in the cloud and on-premises.
This is hardly the time to sell-out the company, but I do think 2010 could be a pivotal year for Novell.
The jury trial in SCO v. Novell started on March 8th and if this jury decides as the Federal district court judge did in August 2007, then Novell will own the copyrights to Unix and UnixWare and SCO will either come out of Chapter 11 bankruptcy protection or liquidate.
We need Novell to remain independent. I remember the glory days of Novell as a Network operating system. Wish they'd make a come back. To have only one OS as a Network op (Windows) won't help any of us. Way to go Novell. Keep those sharks away and kick SCO'S BUT IN COURT!!!!
I truly hope that this Great Company "NOVELL" would keep up the great job they do.
For me... it's the best !