What If… Microsoft Bought Novell?

“Last week, Novell turned down a buyout offer from hedge fund
firm, Elliott Associates. Reasons for the rejected offer were cited
as the price per share being too low and the acquisition would
limit the company’s future growth opportunities.

“In a statement Novell said that it “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.”

“While stockholder value can come in a number of forms (stock
buybacks, cash dividends, &c.) what the Elliott Associates
offer has allowed Novell to do is let everyone know that the
company could be had for the right price without looking like they
are actively fishing for buyers. Sun CEO Jonathan Schwartz used
similar language last year in the run-up to selling the company to
Oracle.”

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