Have Fun People >> 11/8/96 Novell surges on takeover rumors
By Margaret Kane
Shares of Novell Inc. surged in late afternoon trading
Friday on rumors it was being eyed by Netscape
Communications Corp.
Novell's stock was up $2.375 to $11.50, a 26 percent
jump, on the news.
Rumors about Novell being a takeover target have
floated for some time with IBM and AT&T Corp. figuring
as the most likely buyers. The Netscape gossip started
this summer, said analyst Mary McCaffrey at Alex,
Brown in New York.
"I think it's somebody bored on a Friday," she said.
McCaffrey said Microsoft Corp. also was rumored to
be looking at the Provo, Utah, software company. A
spokesperson for Microsoft said the company does not
comment on rumors.
Netscape and Novell officials could not be reached for
comment.
Whoever the buyer is, Novell is certainly on the auction
block, said Gruntal & Co. analyst Roxanne Googin.
"I'm sure they would be a willing seller. I'm not sure
who'd be a willing buyer," she said. "It's pretty clear the
company doesn't know what to do and would welcome
some momentum."
Although Netscape has been able to move fast and
constantly update its corporate image, Googin said,
the company might have some problems absorbing
Novell.
"They morph faster than a Hollywood monster. They
always stay one step ahead of Microsoft's ability to
crush them," she said. "There could possibly be a
synergy between Novell's remaining installed base and
Netscape's offerings, but having said that, I'm not sure
Netscape could afford the time and effort to fix a busted
company. It would be kind of dangerous for them; it
might take their eye off the ball."
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Joe ... <Boy these journalists are "clueless" aren't they Eric Hall?> |
