20 May 2010, 11:20

Report: Novell accepting bids from up to 20 companies

According to a report in the Wall Street Journal, this week Novell, which was put up for up for sale after an unsuccessful bid from a hedge fund, is taking bids from up to 20 companies. The process is expected to result in the sale of the Linux and identity management company, although it is unknown whether this would be as a single entity or if the company's four business units would be sold separately.

The WSJ, citing persons familiar with the matter, says that most, if not all of the companies expected to make serious bids for Novell are private equity firms. In March hedge fund Elliott Associates made a bid for Novell which was rejected three weeks later by Novell's board. The new bids are expected to top Elliott's offer which valued the company as worth two billion dollars. Novell are expected to select a number of bidders as "finalists" and then hold an auction amongst that group. Novell declined to comment to the Wall Street Journal on the matter.

(djwm)

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