Novell Rejects Takeover Bid (NOVL, JPM)
Business software company, Novell Inc. (NASDAQ: NOVL), has rejected an unsolicited takeover bid. The takeover bid worth $2 billion was put forward by hedge fund Elliott Associates. The software firm said that the offer “undervalues the company’s franchise and growth prospects.” Elliott associates had offered $5.75 per share on March 2. Elliott Associates already owns a 8.5% share in Novell.
Novell (NOVL) has decided to pursue alternative ways of augmenting their shareholders’ value via joint ventures and share buyback. It has also started the review of these alternatives. The blue Harbour Group, which owns a 4% stake in Novell, said, “We support the company's decision today to pursue a formal review process with the assistance of its advisors." Novell has appointed JPMorgan (NYSE: JPM) as its advisor.
