Menu
Hedge fund offers $2B for Novell

Hedge fund offers $2B for Novell

The unsolicited offer comes from Elliot Associates

A hedge fund that is already one of Novell Inc.'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 more than Novell's closing price Tuesday of $4.75 per share.

Because Novell is so cash-rich -- it had $991 million in cash and equivalents at the end of January ( download PDF ) -- Elliott says the deal values Novell as an enterprise alone at about $1 billion.

Despite Novell's strong bank account, the company's revenues continue to shrink. In its most recent quarter, which ended Jan. 31, Novell's net revenue was $202 million, down 6% compared to a year ago. Income from operations was also down slightly year over year.

Elliott is Novell's third-largest shareholder , with 24.7 million shares, or 7.1% total.

Novell did not immediately respond to a request for comment.

Eric Lai covers Windows and Linux, desktop applications, databases and business intelligence for Computerworld . Follow Eric on Twitter at @ericylai or subscribe to Eric's RSS feed . His e-mail address is elai@computerworld.com .

Read more about enterprise applications in Computerworld's Enterprise Applications Knowledge Center.


Follow Us

Join the newsletter!

Error: Please check your email address.

Featured

Slideshows

HP channel recognised at 2017 Partner Awards

HP channel recognised at 2017 Partner Awards

The HP Partner Awards 2017 at Shed 10 kicked off with an AMD-sponsored hackers lounge, a mysterious gaming style area filled with dry ice and red lasers, the waiters wearing Mr Robot style masks.

HP channel recognised at 2017 Partner Awards
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments