Novell rejects Elliott Associates’ Unsolicited Takeover Proposal

March 24th, 2010
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On Sunday, Software company Novell announced their rejection of hedge fund Elliott Associates’ unsolicited takeover proposal. According to the company’s press release, the hedge fund, “which owns about a 8.5 per cent stake in Novell, announced its $2 billion offer earlier this month, pitched at about a 21 per cent premium to where the shares were then trading.” Deeming the rate of $5.75 a share “inadequate,” Novell rejected the proposal.

Instead, the company noted, the board “authorized a review of alternatives for realizing value for its shareholders, including share buy-backs, dividend payments, a joint venture or alliance, or the sale of the company.” Blue Harbour Group, 4% owner of Novell, supported the company’s move and “agreed that Novell’s value exceeded the proposal from Elliott.”

Elliott Management Corporation is a hedge fund manager founded by Paul Singer in 1977. The firm manages the Elliott Associates and Elliott International funds and frequently uses a shareholder activist investment strategy.
For Detailed Investor Profiles on these Investors, click below:
Elliott Management Corporation
Related People: Brian Miller*; Gordon Singer; Jon Pollock; Paul Singer
Related Entities: Elliott Associates; Elliott International; Elliott Management Corp
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Investment Management and Hedge Fund Firm Mergers, Acquisitions, Spin-offs and Transactions

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