Novell Dismisses $2 Billion Buyout Bid

March 29, 2010

Novell Inc. said it has dismissed a $2 billion buyout bid from investment firm Elliott Associates L.P., contending that the $5.75 per share cash proposal inadequately expressed the company's value and its growth prospects.

In rejecting the Elliott offer, however, Novell seemed to leave room either for a meatier offer from the investment firm or solicitations from other suitors.

In a statement, Novell said that its board has "authorized a thorough review of various alternatives to enhance shareholder value," including stock repurchase or cash dividend, strategic partnerships, alliances, joint ventures, or a "recapitalization and a sale of the Company." Read more...