Feeds

Red Hat aiming to buy Corel Linux rival?

Scene set for WordPerfect's revenge...

  • alert
  • submit to reddit

Boost IT visibility and business value

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.