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Hedge Fund Offers $2 Billion For Novell
CWmike writes "A hedge fund that is already one of Novell's largest shareholders offered on Tuesday to acquire the struggling, cash-rich enterprise software maker for $2 billion. The unsolicited offer, from New York-based Elliot Associates L.P., is for $5.75 per share in cash, a dollar per share more than Novell's closing price Tuesday of $4.75. The offer caused Novell's stock to leap 29% to $6.15 in after-hours trading. Because Novell is so cash-rich — it had $991 million in cash and equivalents at the end of January (PDF) — Elliott says the deal values Novell as an enterprise alone at about $1 billion."
a struggling cash rich enterprise.
They both start with 'N' you clod!
Novell is widely admired and lauded for having nothing whatsoever to do with products from Symantec. And also for being secretly run by Chuck Norris.
Oops, I guess it's not secret any more.
Welcome to the Panopticon. Used to be a prison, now it's your home.
Where the hell did they get that kind of money? I guess that even during a recession people still need their hedges pruned and their bushes trimmed.
Summation 2
ANd the hedge fund is secretly in cahoots with Daryll McBride. They plan to leverage "certain" IP that Novel owns.
Some drink at the fountain of knowledge. Others just gargle.
Not people - Canadians.
If you were blocking sigs, you wouldn't have to read this.
I actually researched Novell as a possible investment about 5 years ago and came to the conclusion that the company was in a slow death spiral. Not an inescapable one but I don't see them doing anything that gives me confidence they could escape it and their stock price hasn't budged since then.
Maybe they can license some more patents from Microsoft?