Levi & Korsinsky LLP Investigates a Possible Appraisal Action on Behalf of Novell Inc. Shareholders - NOVL
January 05 2011 - 2:39PM
Business Wire
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 jlevi@zlk.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.
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