Elliott Associates Offers to Buy Novell

Posted Mar 3, 2010 12:09 UTC (Wed) by nix (subscriber, #2304)
In reply to: Elliott Associates Offers to Buy Novell by BenHutchings
Parent article: Elliott Associates Offers to Buy Novell

'Apply leverage' only works if you can get debt financing easily. Easy
debt financing is... not around much anymore. You can get it if you're big
(and not Greece) but not if you're planning to spend it revitalising a
company with the *stellar* prospects of Novell, I'd have thought.

Elliott Associates Offers to Buy Novell

Posted Mar 3, 2010 15:58 UTC (Wed) by iabervon (subscriber, #722) [Link]

I'd guess what they mean by leverage is Elliot Associates putting a bunch of their cash into Novell. A hedge fund with money to invest these days may not trust any of the things they could invest in as much as their own ability to produce a good return by managing a company. (In part, this is the reason that companies can't get loans easily: it's not that there isn't the money to loan, it's that the people who have it don't trust credit ratings)