16 September 2010, 16:22

Report: Novell to be sold in two parts

According to a report from the New York Post, networking and Linux specialist Novell, which was put up for up for sale after an unsuccessful bid from a hedge fund earlier this year, has found suitable buyers. People close to the process say that the company will split and be sold in two parts.

Sources say the division that develops SUSE Linux will be sold to a "strategic buyer", while a private-equity firm will acquire the rest of the company. The deal is said to be approximately three to four weeks away from completion and both parties are expected to close simultaneously. Once sold, the news site reports that Novell will subsequently be de-listed. When contacted about the report, Novell declined to comment.

At the time of this writing, Novell's shares are selling for $5.89, 14 cents higher than the original bid of $5.75 from Elliott Associates.

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