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.
Officially Elliott is saying somewhat the opposite. In an official statement Elliott said that it intends to own Novell and has no plans to sell off any business units.
However a deep throat talking to Bloomberg said sell-offs are likely as the company turns around Novell.
We'd think that if Novell's SUSE Linux business is sold off then there will not be much left. Netware has been slowly dying for years and is unlikely to make a comeback.
The Novell board is scheduled to meet early next week to consider Elliott's offer. The fear is that if it does not agree to the deal then shareholders could revolt.
In its letter made public on March 2, Elliott said Novell's shares have "underperformed all relevant indices and peers."
One of the areas where Elliot apparently thinks the company is overspending is on employees, so if it buys the company then staff cuts seem all but certain. Although Novell's sales revenues are about the same as those of its rival Red Hat it has more employees. µ
Rare protest is blocked at the source (code)
Galaxy Fold... more like Galaxy F***ed
And the nostril-facing webcam has been replaced
No port in a publicity storm