The takeover rumours might also have been been fuelled by recent heavy trading in Corel shares on the Nasdaq exchange. Over the past six months, the average daily trading volume in Corel stock was 326,000 shares. But on eight of the last 27 trading days, the volume has fluctuated between 1.02 million and 3.13 million. In that time, 12.14 million shares -- a volume that would normally trade in two months -- traded with the price around $43/4 U.S..
Some of the heightened activity has been caused by Ottawa-based Novell Inc., which acquired Corel shares as part of its acquisition of Corel's WordPerfect program. Novell is known to be selling the stock, and institutional buyers are rumoured to be picking it up. Novell began selling its 7.5 million Corel shares in the last half of 1998, at prices between $1.50 and $3.50 U.S.
Mr. O'Reilly said Novell has stepped up its selling as the price of Corel shares has increased.
"They've sold about 3.3 million shares, which is about six or seven times more than we normally see," he said.
"When you see five or six per cent of your total shares issued selling, obviously there is some concern that so much supply is coming on the market. But it is a testimony to how strong the recovery of the company is that the sale of this stock has not pushed down the price."
Corel shares closed on the Toronto Stock Exchange yesterday at $7.20, up 25 cents on volume of 414,725 shares. On the Nasdaq, they closed at $4 3/4 U.S., up 3/16, on volume of 330,500.
In a related development, Corel has received the best software Internet strategy award at the WebSeller symposium in San Diego. The company's Internet strategy, eStore at www.corel.com/shop was voted tops by 45 web sellers, outclassing IBM consumer software, Macromedia and Microsoft.
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