Submission + - Elliott Associates and Novell: Here's What Happen (consortiuminfo.org)
Andy Updegrove writes: Hostile tender offers are understandably rare in the technology industry, primarily due to the difficulty of retaining key talent. However, IBM's successful integration of Lotus Development in 1995 proved that it could be done. But can a hedge fund pull off such a result? Probably not, at least in the face of a determined White Knight. That's because the value of a Novell merged with a welcome partner will be higher than the break up value of a Novell bleeding talent like a sieve. The result? The White Knight will be able to outbid the corporate raider. Moreover, the value of a second trusted source for a well-supported commercial distribution of Linux will lead potential partners to consider stepping in that otherwise would be content to stand by the sidelines. Paradoxically, Microsoft has a powerful interest in the survival of a vibrant Suse Linux distribution as well. If it loses that bridge to its enterprise customers with heterogeneous environments, it will need to begin all over again — and with who? If a bidder other than Elliot ultimately takes home the prize, it will provide an interesting indication of how important Linux is to the major IT vendors today, as well as some serious insight into who cares about Linux the most.