Apparently planning for disintegration at Novell
Novell has four separate businesses, each of which could be attractive to a rival technology company. However, it's unlikely that a tech company would bid for all of Novell, these people said. Private equity firms, however, could break up Novell and either sell off the pieces or run them as standalone businesses.
Novell, which currently carries a $2 billion market capitalization, held close to $1 billion in cash and short-term investments on Jan. 31. A private buyer could acquire Novell for about $500 million in cash and take on debt to cover the rest of the cost, the people familiar with the matter said.