Novell Inc. announced on November 22, 2010 that it had agreed to sell
the company to Attachment Corporation for $6.10 per share for a total
transaction value of $2.2 billion. Attachmate is owned by Francisco
Partners, Golden Gate Capital and Thoma Bravo. In conjunction with the
sale, Novell announced that it has agreed to sell certain intellectual
property to CPTN Holdings LLC for $450 million in cash.
In addition to the cash from the asset sale, for the most recent
quarter, the company reported cash of $1.03 billion. Thus, after
factoring in the current cash balance plus the asset sale, Attachment is
purchasing Novell's operations, which includes Novell's valuable SUSE
Linux business, for approximately $720 million, net of cash.
Accordingly, shareholders may have received greater value if the Novell
board sold the company's assets separately and distributed a cash
dividend then by selling the company as a whole.
Furthermore, Novell stock traded as high as $6.53 as recently as
September 22, 2010 and at least one analyst, Oscar Gruss, set a price
target of $7.00 per share before the transaction was announced. In
addition, Novell's executive officer and directors are to receive
approximately $16,968,806 in the aggregate due to the acceleration and
vesting of unvested stock options, restricted stock awards, restricted
stock units, and unvested stock-based deferred compensation units upon
consummation of the sale which they would not have received if the
company's assets were sold separately.
If you own Novell stock and believe the company is worth more than $6.10
per share, you may have a right to initiate an appraisal action to seek
fair value. To find out whether appraisal is appropriate for you, please
contact Joseph E. Levi, Esq. either via email at email@example.com
or by telephone at (212) 363-7500, toll-free: (877) 363-5972, or visit http://www.zlk.com/novell-appraisal.html.
Levi & Korsinsky has expertise in prosecuting investor securities
litigation and extensive experience in actions involving financial fraud
and represents investors throughout the nation, concentrating its
practice in securities and shareholder litigation. Attorney advertising.
Prior results do not guarantee similar outcomes.
Levi & Korsinsky, LLP
Joseph Levi, Esq.
30 Broad Street - 15th Floor
New York, NY 10004
Toll Free: (877) 363-5972
Fax: (212) 363-7171