Novell Investor Wants Company to Fire Employees, Sell Division
Blum Partners revealed this week that, disappointed by recent Novell results, it wants big changes at the NetWare and Linux vendor.
In an unusual move, the Blum Capital Partners LP investment firm publicly revealed it was very unhappy with Novell's current direction.
The San Francisco-based company published several letters to Novell CEO Jack Messman detailing its complaints and suggesting changes in its SEC (Security and Exchange Commission) Schedule 13-D.
The 13-D is a form that a company or individual must file within 10 days of obtaining more than 5 percent of a company's stock.
Earlier this year, Blum only owned 1.33 percent of Novell stock.
Then, in late August, Blum acquired enough shares to put it over the 5 percent mark.
Blum had initially outlined a new path for Novell in May and June, but Messman disagreed with Blum's prescription for Novell and did not implement them.
After Novell's disappointing financial results for its third fiscal quarter, which ended on July 31, 2005, and were reported on Aug. 25, Blum apparently decided to take a larger position in Novell and go public with its plans.