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Novell Says Elliott Offer "Inadequate" - It's "business as usual" |
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Saturday, March 20 2010 @ 09:40 PM EDT
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Ronald W. Hovsepian,
President and CEO, Novell has put out a statement that it has considered the Elliott Management offer but finds it "inadequate". It's "business as usual at Novell". Here's the press release.
Here's the statement sent to customers:
Dear Customer:
I want to share with you an important announcement that
Novell made today.
As you may know, on March 2nd, Elliott Associates, L.P.
announced an unsolicited, conditional proposal to acquire
Novell. Today we issued a press release announcing that our
Board of Directors has concluded, after careful
consideration, including a review of the proposal with its
independent financial and legal advisors, that Elliott's
proposal is inadequate and that it undervalues the Company's
franchise and growth prospects.
Additionally, we announced that our Board has authorized a
thorough review of various alternatives to enhance
stockholder value.
Our relationship with you is extremely important to all of
us at Novell, and I want to assure you that you can remain
confident that we are committed to serving you as we always
have. I also want to reaffirm to you that it remains
business as usual at Novell, and we do not intend for there
to be any changes in our relationship with you. Please do
not hesitate to contact me or other members of our team at
any time; we always strive to be available to provide you
the best solutions for your needs.
On behalf of the Board and management team, I thank you for
your ongoing commitment to Novell.
Sincerely,
Ron Hovsepian
President and CEO
Here's the body of the press release:
Novell's Board of Directors Rejects Elliott Associates' Unsolicited, Conditional Proposal as Inadequate
WALTHAM, Mass.
20 Mar 2010
Authorizes Exploration of Various Alternatives to Enhance Stockholder Value
Novell, Inc. (Nasdaq: NOVL) today announced that its Board has concluded, after careful consideration, including a review of the proposal with its independent financial and legal advisors, that the unsolicited, conditional proposal from Elliott Associates, L.P. to acquire the Company for $5.75 per share in cash is inadequate and that it undervalues the Company's franchise and growth prospects.
Novell also announced that its Board of Directors has authorized a thorough review of various alternatives to enhance stockholder value. These alternatives include, but are not limited to, a return of capital to stockholders through a stock repurchase or cash dividend, strategic partnerships and alliances, joint ventures, a recapitalization and a sale of the Company.
Novell's Board is committed to enhancing value for Novell stockholders and believes that an exploration of alternatives is in the best interests of the Company and its stockholders. Novell's Board noted that there can be no assurance that this will result in any agreement or transaction. The Company does not intend to disclose developments with respect to any of these alternatives unless and until the Board has approved a specific course of action.
J.P. Morgan is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to Novell.
Follow the link for the disclaimers and all the template info. More from the NYTimes:The Blue Harbour Group, an investment firm that said it owns 4 percent of Novell, endorsed the company’s decision to reject Elliott’s bid.
“We agree with Novell’s management and board of directors that the company’s value significantly exceeds Elliott’s proposal,” Clifton S. Robbins, Blue Harbour’s chief executive, said in a statement. “Blue Harbour has been in active and constructive discussions with Novell’s management in recent months on various alternatives to create and unlock value.”
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Authored by: Anonymous on Saturday, March 20 2010 @ 09:54 PM EDT |
This is good news. Though the Linux community sometimes has disdain for Novell,
I am thankful for what they do.[ Reply to This | # ]
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- Novell Sold us out - Authored by: symbolset on Sunday, March 21 2010 @ 03:13 AM EDT
- Until you can prove it... - Authored by: softbear on Sunday, March 21 2010 @ 05:10 AM EDT
- You are wrong. - Authored by: Anonymous on Sunday, March 21 2010 @ 12:59 PM EDT
- Novell Sold us out - Authored by: Barbie on Sunday, March 21 2010 @ 01:36 PM EDT
- Novell Sold us out - Authored by: davidf on Sunday, March 21 2010 @ 03:58 PM EDT
- Dude, you choose whatever OS you want, whether free(dom) or vendor lockin'. : p n/t - Authored by: Anonymous on Sunday, March 21 2010 @ 06:43 PM EDT
- What exactly is Mono? - Authored by: wvhillbilly on Sunday, March 21 2010 @ 11:33 PM EDT
- Mono? - Authored by: Ed L. on Monday, March 22 2010 @ 01:32 AM EDT
- Mono? - Authored by: wvhillbilly on Monday, March 22 2010 @ 02:45 PM EDT
- Mono? - Authored by: Ed L. on Monday, March 22 2010 @ 05:10 PM EDT
- fstab - Authored by: Ed L. on Monday, March 22 2010 @ 01:12 AM EDT
- fstab - Authored by: Vic on Monday, March 22 2010 @ 09:20 PM EDT
- fstab - Authored by: Ed L. on Tuesday, March 23 2010 @ 12:01 AM EDT
- fstab - Authored by: Vic on Wednesday, March 24 2010 @ 07:59 AM EDT
- Vendor lock-in with a new twist - Authored by: Anonymous on Monday, March 22 2010 @ 02:06 AM EDT
- Curb your enthusiasm - Authored by: Superbiskit on Monday, March 22 2010 @ 12:59 PM EDT
- I still disagree - Authored by: tbogart on Sunday, March 21 2010 @ 04:01 PM EDT
- RE: "Novell Sold us out" - Authored by: Anonymous on Sunday, March 21 2010 @ 11:37 PM EDT
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Authored by: Anonymous on Saturday, March 20 2010 @ 10:26 PM EDT |
As both an open source advocate and a pro stock trader, this is great news! The
danger here was that Elliot is not one of the nice hedge funds that takes
companies private, removes their footguns, and then takes them public again all
healed up (some actually do that -- only some hedgies are "evil" --
but I won't state a percentage here).
Rather than fixing companies, Elliot take them apart and sell the scraps. This
could have resulted in a loss despite Novell winning against SCO -- suppose a
well-off large software company had appeared to buy that little scrap that was
the copyrights we all think Novell still owns....could have been fairly ugly --
what use would the courts have been if someone did this little sidestep?
I am breathing a sigh of relief, and hoping all the Novell stock I bought
doesn't tank back to the pre offer price as a result of this -- but that would
be a small loss compared to what *might* have happened. It's such thinly traded
stuff that buying or dumping a mere 1000 shares moves the price...(a couple of
the moves Friday were *me* -- the upticks, thanks)
Looks like the court case is going well -- that alone should boost their
prospects considerable. Wall street is fairly forward looking, and the effect
should kick in shortly. The saying is buy the rumor, sell the news -- but Wall
street is just now getting the rumor.
DougC
[ Reply to This | # ]
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- Linux does not infringe Unix copyrights. - Authored by: Anonymous on Saturday, March 20 2010 @ 11:10 PM EDT
- Not so fast - Authored by: Anonymous on Sunday, March 21 2010 @ 12:54 AM EDT
- Poor Elliot! - Authored by: Ian Al on Sunday, March 21 2010 @ 06:39 AM EDT
- Poor Elliot! - Authored by: PJ on Sunday, March 21 2010 @ 11:25 AM EDT
- Poor Elliot! - Authored by: Anonymous on Monday, March 22 2010 @ 09:43 AM EDT
- Poor Elliot! - Authored by: Anonymous on Monday, March 22 2010 @ 11:23 AM EDT
- What if? - Authored by: Anonymous on Sunday, March 21 2010 @ 10:56 AM EDT
- What if? - Authored by: PJ on Sunday, March 21 2010 @ 11:04 AM EDT
- What if? - Authored by: Barbie on Sunday, March 21 2010 @ 02:05 PM EDT
- What if? - Authored by: Sunny Penguin on Sunday, March 21 2010 @ 01:06 PM EDT
- What if? - Authored by: PJ on Sunday, March 21 2010 @ 03:23 PM EDT
- What if? - Authored by: Anonymous on Sunday, March 21 2010 @ 04:24 PM EDT
- What if? - Authored by: Anonymous on Sunday, March 21 2010 @ 08:28 PM EDT
- What if? - Authored by: Wol on Sunday, March 21 2010 @ 04:56 PM EDT
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Authored by: globularity on Saturday, March 20 2010 @ 10:48 PM EDT |
.
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Windows vista, a marriage between operating system and trojan horse.[ Reply to This | # ]
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- Skipfish: web application security scanner + Lecture Videos: F/OSS Development - Authored by: Anonymous on Saturday, March 20 2010 @ 11:16 PM EDT
- Google knew YouTube was Evil + Instant Posts Banned + Not Using Patented Tech? You Lose! - Authored by: Anonymous on Sunday, March 21 2010 @ 02:57 AM EDT
- Doctor Peter Watts Convicted - Authored by: The Mad Hatter r on Sunday, March 21 2010 @ 03:26 AM EDT
- March 24 is Ada Lovelace Day & Don't you be forgetting it ! - Authored by: Anonymous on Sunday, March 21 2010 @ 03:57 AM EDT
- Reporters Notes from end of Day 9 - Authored by: Anonymous on Sunday, March 21 2010 @ 10:51 AM EDT
- Scottish double jeopardy reforms published - Authored by: tiger99 on Sunday, March 21 2010 @ 02:39 PM EDT
- Sorry. Flash, you're out of luck - Authored by: Anonymous on Sunday, March 21 2010 @ 03:14 PM EDT
- "an odd source of SCO expertise" - Authored by: SpaceLifeForm on Sunday, March 21 2010 @ 05:54 PM EDT
- Cleaning the barnacles from the S.S. Copyright - Authored by: Anonymous on Sunday, March 21 2010 @ 07:17 PM EDT
- Multicore requires OS rework, Windows architect advises - Authored by: SpaceLifeForm on Sunday, March 21 2010 @ 11:17 PM EDT
- Hahaha! - Authored by: Bernard on Monday, March 22 2010 @ 06:52 AM EDT
- How the World Turns for Miguel de Icaza - Authored by: sproggit on Monday, March 22 2010 @ 02:46 AM EDT
- State of denial: Revisionist education in Texas - Authored by: JamesK on Monday, March 22 2010 @ 08:13 AM EDT
- this video is blocked in your country - Authored by: Anonymous on Monday, March 22 2010 @ 08:23 AM EDT
- Canada - BC Court of Appeal decided lawyers can be held liable for their clients' legal costs - Authored by: Anonymous on Monday, March 22 2010 @ 08:57 AM EDT
- Microsoft strong-arming Pixart in Argentina - Authored by: Anonymous on Monday, March 22 2010 @ 09:05 AM EDT
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Authored by: globularity on Saturday, March 20 2010 @ 10:50 PM EDT |
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Windows vista, a marriage between operating system and trojan horse.[ Reply to This | # ]
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Authored by: Anonymous on Sunday, March 21 2010 @ 03:26 AM EDT |
...Board of Directors has concluded, after careful consideration,
including a review of the proposal with its independent financial and legal
advisors, that Elliott's proposal is inadequate and that it undervalues the
Company's franchise and growth prospects.
Companies which receive a
takeover bid almost always say that. This is not newsworthy in the
slightest.
It's like when somebody sells a house. You always ask for more
than you think you will get. And if you're buying a house, your initial offer is
usually a bit less than you are really willing to pay.
Nothing to see
here, move along. [ Reply to This | # ]
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Authored by: The Mad Hatter r on Sunday, March 21 2010 @ 03:31 AM EDT |
While Novell isn't doing as well as Red Hat, it's got some decent products, and
with some minor changes (reducing Hovsepian's salary for instance) it could be
profitable. Elliot is looking for something undervalued that they can sell the
pieces of.
Still this may put Novell on the block. The problem is that the most likely
companies to have a use for Novell's products, also buy from it's competition
(IBM for example), and this would cause conflicts.
Of course Apple is sitting on some heavy cash...
---
Wayne
http://madhatter.ca/[ Reply to This | # ]
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Authored by: Anonymous on Sunday, March 21 2010 @ 08:11 PM EDT |
Unofficial (as anon) corrections here [ Reply to This | # ]
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Authored by: tiger99 on Monday, March 22 2010 @ 09:01 AM EDT |
It seems that we were all asleep, or too busy, so Mr. or Ms. Anonymous above has
dropped a strong hint that we need a proper corrections thread. Always supposing
that any are needed, of course....[ Reply to This | # ]
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Authored by: Anonymous on Monday, March 22 2010 @ 11:56 PM EDT |
Perhaps the best entity to supercede Elliott and buy Novell would be Google.
1. Google, like Novell, has a strong company history built on networking. 2.
Google would get their own Linux distribution, along with some of the in-built
protections from the SuSE arbitration (maybe). 3. Google, among others, is
endangered by some of the various mergers that have created large and diverse
competitors, like Oracle (Sun) and EMC/VMware. 4. Novell's remaining
technologies (e.g. directory services, zenworks, OpenOffice extensions) are
complementary to Google's existing products, and could dovetail neatly. 5. Mono
probably wouldn't bother Google, as they seem to be satisfied to deal with
Microsoft on various levels; it could actually benefit Google, to thus have
better seats in the C# gallery.[ Reply to This | # ]
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