Novell Draws Bidding War; Attachmate Offers $2.2 Billion

Business software maker Novell Inc. said Monday it has found a new suitor to take over the company after rejecting a lower offer from a private equity firm earlier this year.

Novell, based in Waltham, Mass., said Attachmate Corp. has agreed to pay about $2.2 billion in cash, or $6.10 per share.

That tops an offer of $5.75 per share that Elliott Associates L.P. made back in March, a bid that valued the company at about $2 billion. Messages left with Elliott Associates were not immediately returned Monday.

The new offer represents a premium of 27 percent over Novell's closing share price of $4.80 on March 1, the day before Elliott Associates made its offer.

Novell shares climbed 37 cents, or 6.6 percent, to $5.96 in morning trading.

Attachmate, based in Seattle, is owned by private equity firms Francisco Partners, Golden Gate Capital and Thoma Bravo.

This program aired on November 22, 2010. The audio for this program is not available.


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