Feeds

Investor dumps SCO

But the money is ours, says SCO

  • alert
  • submit to reddit

3 Big data security analytics techniques

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

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.
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.
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.