Someone has already smelled a rat it seems.
Commercial Linux distro and systems software maker Novell said last night, after it had received a takeover deal from a New York hedge fund named Elliott Associates to take Novell private, that it would put out a statement about the proposal. It took nearly four hours to come up with the statement, and the wonder is why. Here's …
No, they want more money.
The article shows how much Novell used to be worth.
Note the word "used".
Novell's value has been declining for years. IMHO The offer sounds like a good exit plan for the current shareholders. Unless a miracle happens, Novell's value will only continue to slide.
The "investigation" is pure trolling by lawyers unconnected with the deal. They come up with a (usually thin) rationale for disapproving the deal and then try signing up as many shareholders as possible. If a shareholder lawsuit actually emerges, these guys will combine efforts with whomever else is attempting the same thing and grab a bunch of fees in the process.
BTW, I have no opinion about the buyout offer and don't know whether the terms are reasonable -- this is just how I read the link.
If Novell has strong shareholder loyalty, the Elliott offer obvously won't go anywhere. The other thing I've heard is that Elliot seldom actually completes their buyout offers. They leverage the offer to gain further control which gives them the ability to figure out their exit sooner rather than later.
Netware was once a great software company but has been dying a slow death for years now. It would be good to see someone put it out of its misery with a quick, clean kill.
The Board of Novell should accept and cut their losses. Sure Novell has a cash pile, but they are losing contracts and sales left right and center. Besides, $1bn cash reserve isn't much compared to the big boys in the industry. Novell will eat through that cash pile fast if their sales pipeline continues to dry up at the current rate.
Personally would like to see Novell go to IBM or HP.
What would a hedge fund want with Novell?
Do they expect to make good profits out of software and systems? Sounds implausible.
But Novell has "crown jewels" IP. Could someone be expecting to do what SCO tried and failed?
The link below suggests that the financiers of the takeover bid of Novell is quite probably MS.
Oh shock horror of horrors, MS will buy up Novell for next to nix & dissolve the whole thing as they have done in the past. Scum merchants of bad software. I'm so glad I dumped SuSE & went with Ubuntu.