Feeds

Investor dumps SCO

But the money is ours, says SCO

  • alert
  • submit to reddit

Top three mobile application threats

The major speculator backing The SCO Group's legal jihad against Linux wants its money back. Marin County, California-based equity fund BayStar Capital invested $20m in SCO back in October, confident that the Utah firm had a strong legal case. Now Baystar says SCO has breached the agreement and wants to redeem its investment, which takes the form of 20,000 shares of SCO's Series A Convertible Preferred Stock. SCO doesn't agree, and wants to hang on to the cash. The terms were amended in February.

SCO says that BayStar alleges that SCO breached Sections 2(b)(v) 2(b)(viii) and 3(g) of the February agreement, but doesn't know more specifics. The sections detail obligations for "representations and warranties" and public disclosure. Shares in the Utah company fell 13 per cent today on the news. SCO admitted in October that the focus on its litigation had already damaged its traditional Unix on Intel business. SCO reported that at the end of the quarter ending 31 January, the company had $57.94m in cash and cash equivalents - down $6m from the previous quarter - and $6.67m in securities. Liability in the form of Series A stock was valued at $29.67m.

"Our funds have never taken part in toxic or death spiral convertible financings of any sort," BayStar's managing partner Lawrence Goldfarb wrote in a letter to the Financial Times last month. He wasn't talking about SCO, but critics will judge the metaphors to be appropriate. ®

Related stories

Judge stays Red Hat vs SCO
SCO vs. IBM vs. SCO: Is the end in sight?
SCO lifts skirt but investors recoil
Microsoft encouraged anti-Linux investment shock!
SCO shares keep on sliding

Combat fraud and increase customer satisfaction

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.