Novell Targeted In Acquisition Bid
Hedge Fund offers-2billion for Novell
Ars technica article. This is serious stuff. hedge funds are not known as "turn around" investors. They have no plan or idea on how to improve a company or how to make it stronger in the market. They own a big stake in the company and now they want to improve the profit margin so that they can dslodge or sell off the assets to make a quick financial gain and move this property off their books. Plain and simple.
How will they go about it?
1) Fire leadership and all those they consider non essential to any profitable projects.
2) Look to see which projects can be sold to competitors.
3) Examine any patents or cross licenses that can be exploited for sale or litigation (short term)
4) Shape up the bottom for the next four quarters to show steady improvements to P/E ratio.
5) Sell. Sell. Sell.
What does that mean for this community? Two things. SuSe and ATI drivers.