UPDATE 1-Novell shares surge on hopes of higher bid
* Elliott bids $2 bln for Novell
* Shares surge as much as 29 pct
* Novell unlikely to accept offer
* Possibility of other suitors, higher bid (Adds analyst's comment)
By Sayantani Ghosh
BANGALORE, March 3 (Reuters) - Shares of Novell Inc NOVL.O jumped as much as 29 percent on Wednesday, a day after investment fund Elliott Associates bid $2 billion for the business-software maker, as investors speculated that Novell may see a higher bid. The offer for the world's No. 2 maker of the open source Linux operating system is at a 21 percent premium over Tuesday's closing price.
The bid marks at least the third time that Elliott has tried to buy a technology firm in the last couple of years.
Some analysts believe that Novell will reject the offer because it is unwilling to sell its promising Linux business cheap, but it might receive other offers or even see a higher bid from Elliott.
Novell confirmed it had received a bid from Elliott, which already owns 8.5 percent of Novell, and said it would review the offer. Continua...