Elliott Bids $2 Billion For Software Co. Novell

Mar 3 2010 | 5:44am ET

Elliott Management has made an unsolicited offer to buy software company Novell for almost $2 billion in cash.

The New York-based hedge fund, which already owns an 8.5% stake in Novell, is offering $5.75 per share, a 21% premium to Novell shares’ closing price yesterday. Elliott would buy the shares it does not own for about $1.83 billion.

In a letter to Waltham, Mass.-based Novell’s board of directors, portfolio manager Jesse Cohn wrote, “Over the past several years, the company has attempted to diversify away from its legacy division with a series of acquisitions and changes in strategic focus that have largely been unsuccessful.  As a result, we believe the company's stock has meaningfully underperformed all relevant indices and peers.”

In a short statement of its own, Novell said it “anticipates that its board of directors will review Elliott’s proposal in consultation with its financial and legal advisors.”

Elliott has about $16 billion in assets under management.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note