Feeds

Red Hat aiming to buy Corel Linux rival?

Scene set for WordPerfect's revenge...

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

Corel shares soared yesterday on speculation that Red Hat was planning a bid for the rival Linux distributor. The market clearly views the possibility as a marriage made in heaven, because Red Hat stock promptly hared after it. Corel stock closed at $20 7/8 (up 48 per cent) and Red Hat at $236.625 (up 11 per cent). In the last week, Red Hat's share price has increased 95 per cent, giving it market capitalisation of more than $15 billion. Those not in on the ground floor in August when Red Hat was initially priced at $14 will be eyeing the present $236.625 with some disappointment. As yet, there's been a no-comment-on-speculation from Red Hat, and "we haven't been approached by Red Hat" from Corel. So far, the trading pattern in the shares suggests that it is day traders who are jumping in on the high level of activity, rather than action by insiders. The rumour resulted from financial analyst speculation that because Red Hat had acquired the privately-held tools maker Cygnus in mid-November for $674 million, other acquisitions were likely. Other possible objects of Red Hat's affection, and significant financial leverage, include Sendmail, and perhaps Mozilla. Red Hat announced yesterday that it had concluded a deal to provide consultancy and support to AutoZone, an auto parts retailer that plans to install Linux terminals in its 2,800 stores. In September, the Burlington Coat Factory Warehouse installed Linux in its 260 stores. It certainly would make sense if a Red Hat-Corel deal were consummated. Corel could bring to the party its retail distribution capability, its WordPerfect suite, and its graphics for the masses. Corel's Linux distribution has been topping the download charts, so there could be some concern by Red Hat that although Red Hat has 68.7 per cent of the US market, according to IDC, Corel could rapidly become a contender. The prize however for Red Hat would be Corel's WordPerfect suite, especially in view of the Linux editions and the continuing affection for the product, despite its troubled history. Even the Department of Justice and Judge Jackson use Word Perfect. The big loser in the WordPerfect story has been Novell: it finally disposed of its Corel shares just before the Corel share price spiralled upwards. Yesterday Corel launched its WordPerfect Family Pack at $79, with a mail-in rebate of $20 for North American users. The product includes WP8, the Quattro Pro8 spreadsheet, as well as graphics, photo, typing, clipart, and the Compton encyclopaedia. Corel CEO Michael Cowpland still has an appointment with the Ontario Securities Commission in January following an investigation of alleged insider trading, which he strongly denies. ®

Website security in corporate America

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.