Novell Soars After Elliott Makes $2 Billion Offer |
| BusinessWeek - Mar 3, 2010 |
Novell Inc. soared as much as 29 percent in Nasdaq trading after shareholder Elliott Associates LP made an unsolicited $2 billion takeover offer, signaling that investors expect a bidding war.
Elliott, a money management firm that owns about 8.5 percent of Novell’s shares outstanding, made the $5.75-a-share cash offer public in a letter yesterday to the company’s board. Shares of the networking software maker climbed as high as $6.15 on the Nasdaq today, the most in more than seven years.
Elliott’s bid could trigger more offers from technology companies, such as Cisco Systems Inc., Hewlett-Packard Co. or Microsoft Corp., said Richard Williams, an analyst at Cross Research. Novell has struggled to sustain growth over the past 10 years, sending its stock down 85 percent. The company reported its sixth straight quarterly sales decline last week, with Chief Financial Officer Dana Russell predicting “muted” revenue in the current quarter.
Read Full Article from BusinessWeek
- Posted: 2010-03-03 10:50:52
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