Novell rejects Elliott Associates' "inadequate" bid
Novell has rejected Elliott Associates' unsolicited bid for the company which valued it at around two billion dollars. In an announcement on Saturday, Novell said that the bid for the SUSE Linux and Identity Management business was "inadequate" and that it "undervalues the Company's franchise and growth prospects". Elliot made its bid on the 2nd of March.
The Novell board has now authorised a "thorough review" of ways to enhance stockholder value including options such as a stock repurchase, cash dividends, re-capitalisation or a sale of the company; the latter option may suggest that Novell is searching for buyers other than Elliott Associates. The Novell announcement is hedged saying that there is "no assurance that this will result in any agreement or transaction" and that the company will not disclose any developments with respect to the alternatives until approved by the board.