Report: Novell acquisition delayed over legacy assets
According to a Reuters report the acquisition of Novell is being delayed over difficulties in selling the non-Linux portions of the business. Citing anonymous sources, the report says that Novell is attempting to sell the company as a single entity, rather than parting with the SUSE Linux division, which would leave the company with what was described as "a shell of legacy assets". The report says Novell has many rivals prepared to pay for the SUSE Linux division alone. According to a report last week Novell was to be split and sold as two parts with a "strategic buyer" lined up for the SUSE Linux business.
However, private equity firms, who were expected to bid for the non-Linux business that includes the Netware and identity management units, appear to be unwilling to pay the price Novell is asking for that business. There have been multiple rounds of bids for Novell over the six months since it rejected a unsolicited $2Bn bid from the Elliot Associates hedge fund and said it was considering its options. Sources told Reuters that it was unclear when final bids for the company would be submitted.