Novell Declines Elliott Offer, Hedge Fund Hails Sale News

Mar 22 2010 | 2:07pm ET

Software giant Novell Inc. has rejected a $2 billion bid for itself from hedge fund Elliott Associates.

The Waltham, Mass.-based company said the hedge fund’s bid undervalues its “franchise and growth prospects.” But Novell said it would launch a review of strategic alternatives, an indication that it would consider putting itself up for sale.

Despite the rejection, Elliott said it was pleased with Novell’s announcement.

“We welcome the board’s decision to conduct a sale of the company, which we believe is the best way to maximize shareholder value,” the hedge fund said. “Our goal is to acquire Novell, and our cash offer to acquire all of the company’s shares for $5.75 per share provides shareholders with a substantial premium. We look forward to the process and to actively pursuing an acquisition of the company.”

Elliott did not indicate whether it would be willing to boost its offer.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.