Should Novell Go Private?
The company received what they call an "unsolicited proposal from Elliott Associates, L.P. to acquire the Company for $5.75 per share in cash," which values the company at just under $2 billion.
In layman terms it basically means Novell is for sale and could be taken private by institutional stock holder/Hedge Fund Elliot Associates. In my personal opinion it's likely a good deal for Novell and its shareholders.
The quarterly pressure of meeting revenue targets that a public company has just doesn't match with Novell's strategy which is more of a medium term approach in my view. Novell's intelligent workload management strategy will not deliver the short term quarterly gains that the public markets demand.
As a private company Novell will not be subject to the same quarterly scrutiny and will have more room to develop its strategy. Whether or not that strategy is a winner or loser remains to be seen.