Monday, November 20th, 2006, 8:15 pm
Novell Downgraded After Microsoft Deal
Filed under: Credit Suisse downgrades Novell
Credit Suisse said shares of Novell have traded up sharply after the recent partnership announcement with Microsoft Corp. The brokerage said although the new relationship with Microsoft will include a net payment to Novell, this is more of a one-time event and it does not believe the 10 percent appreciation in the stock is sustainable.
–The brokerage said the company’s Linux patent deal with Microsoft will hurt its standing in the open source community.
So, the short-term gain which Novell sought might last for a very short term indeed.
