Hedge Fund Offers $2 Billion For Novell 144
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."
I wish I had (Score:2, Funny)
a struggling cash rich enterprise.
Re:It's been a while, but... (Score:3, Funny)
They both start with 'N' you clod!
Re:It's been a while, but... (Score:3, Funny)
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.
$2 Billion?! (Score:5, Funny)
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.
Re:It's been a while, but... (Score:3, Funny)
ANd the hedge fund is secretly in cahoots with Daryll McBride. They plan to leverage "certain" IP that Novel owns.
Re:Nortel Pensioners Will Be All Over This (Score:3, Funny)
Re:Fiduciary duty (Score:1, Funny)
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?