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."

Comments

Re:Already Under Investigation

[Hurricane78]

All stock market prices are by their very definition imaginary and unrelated to the true value. That’s the reason that we have a bursting bubble every 30 years. Scientifically it’s even proven, that in a market that does not deal with physical goods, there must be a bursting bubble about every 30 years.

So the whole question is pointless.

Re:Already Under Investigation

[Hurricane78]

Sorry, but those who moderated me Troll, are prejudiced ignorant assholes.

The study was presented in Spektrum der Wissenschaft, the German version of the Scientific American and perhaps the most respected German science magazine, a couple of years ago. It was concise and based on a lot of science. They have an archive online. Look it up.