Novell target of hedge fund's $US2 billion takeover bid

One of the oldest companies in the networking business becomes the subject of a takeover offer from Elliott Associates

Novell, one of the earliest names in networking, Tuesday received an unsolicited takeover bid worth about $US2 billion by a New York hedge fund.

Elliott Associates has offered $5.75 per share for Novell, which in recent years has turned its focus to open source, security and management software.

Also read: 2010 hottest tech M&A deals

Novell has struggled financially, recently reporting its sixth consecutive quarterly sales decline. Revenue fell 10% during its most recent fiscal year wrapped up in October and its net losses widened. CEO Ron Hovsepian’s total compensation fell 17% to $5.7 million.

Novell initially made a name for itself by introducing the NetWare network operating system in 1983 and it dominated the market for a decade. The company withered in competition vs. Microsoft in the 1990s and its efforts to diversify via such buyouts as Unix System Laboratories and WordPerfect failed to return Novell to past glory. In recent years Novell has focused on open source software, via its SuSE and Ximian acquisitions, and mended fences with Microsoft.

About 20 years ago Novell was the subject of another possible M&A deal, one involving eventual IBM acquisition Lotus, but the deal fell through.

If Elliott’s takeover is successful, the deal would certainly give attendees of Novell BrainShare conference, set for March 21-25 in Salt Lake City, something to buzz about.

Elliott Associates made headlines last year for being one of the parties that bought auto parts company Delphi when it was spun off from General Motors.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsnovelltakeoverElliott Associates

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Network World staff

Network World
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?