An investigation on behalf of current long term shareholders in Novell, Inc. (Public, NASDAQ:NOVL) concerning shareholder claims over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover was announced.
If you are a currently a long term investor in shares of Novell, Inc. (NASDAQ:NOVL)
and / or if you have additional information relating the investigation, you have certain options and you should contact the Shareholders Foundation at:
mail@shareholdersfoundation.com or at: +1 (858) 779 – 1554
The investigations by law firms focus on potential breaches of fiduciary duty and other violations of state law arising out of the offer to sell Novell, Inc. (NASDAQ:NOVL) to Elliott Associates, L.P. Novell, Inc., located in Waltham, MA, develops, sells and installs enterprise software that is positioned in the operating systems and infrastructure software layers of the information technology industry. On March 02, 2010 Novell, Inc. (Nasdaq: NOVL) confirmed that it has received an unsolicited, conditional proposal from Elliott Associates, L.P. to acquire Novell, Inc for $5.75 per share in cash, which implies an enterprise value net of cash of $1.0 billion. According to Elliott Associates, L.P. and Elliott International, L.P the price represents a premium of 49% over Novell’s current enterprise value and 77% over its 90-day volume-weighted average enterprise value; the price represents a premium of 115% over Novell’s value on January 4, 2010, the last trading day before to Elliott Associates, L.P. and Elliott International, L.P commenced actively acquiring Novell's common stock; and the price also represents a 37% premium to Novell's closing stock price on January 4, 2010 and a 20% premium to Novell's closing stock price yesterday.
But according to one investigation by a law firm “the transaction appears to be unfair” to current investors of Novell, Inc. (Public, NASDAQ:NOVL) because the offer is “grossly unfair, inadequate, and substantially below the fair or inherent value of NOVL shares”.
Shares of Novell, Inc. (NASDAQ:NOVL) traded in after hours at $5.99 per share, thus above the proposed offer. NOVL shares traded at almost $5 per share as early as in Feb 2010, at $6.43 in August 08, at $7.08 in May 2008, at $7.45 in Feb. 2008, and at almost $10 per share in 2006.
The investigation “concerns, among other things, further whether Elliott Associates, L.P. may be underpaying for Novell, Inc. (NOVL), thus unlawfully harming NOVL shareholders”.
Source: http://www.prlog.org/10556630-novell-inc-investor-alert-offer-under-investigation.html
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