Recent email from Ron Hovsepian to customers:
I wanted to contact you personally to address recent news about Novell.
Late Tuesday, March 2, Novell received an unsolicited, conditional proposal from Elliott Associates, L.P. to acquire Novell for $5.75 per share in cash. Elliott is an investment firm that holds shares of Novell stock. As you will see in our news release, we anticipate Novell's Board of Directors will review Elliott's proposal in consultation with Novell's financial and legal advisors. Beyond that, it is business as usual for us at Novell.
Our customers remain a top priority. We are privileged to work with tens of thousands of customers worldwide, and providing you the best possible products and services is our primary focus. Our employees and partners remain committed to helping you get the most out of your Novell investment. Our business is strong and I am confident about our future.
I am personally grateful for the trust and confidence you have placed in Novell. Please do not hesitate to contact me or members of my team at any time if you have questions about the road ahead.
Thank you for your continued support and business.
President and CEO
Hmmmm. Why would Mr. Hovsepian tell customers this news?
Perhaps the best alternative for Novell investors...or will this email trigger a bidding war for Novell? Novell has had several suitors over the years...IBM, HP to name a few. Will they try again? There are other companies that could benefit from Novell's technology...VMware comes to mind (Platespin, SuSE as a guest OS and complement to SpringSource, Xen, ZENWorks, eDirectory), but VMware probably doesn't have the cash.
Novell has always had good technology, no doubt...but the "strategy du jour" that has plagued Novell over the past 15 years has really led them to this point.
More on this from DCS later. Stay tuned...
[posted by: Drue Reeves]