Novell (NOVL) Jumps on Reports of Microsoft (MSFT) Partnership
According to the report, Micsosoft will offer sales support for Novell's Suse Linux operating system and the two will develop technologies to make it easier for users to run both Linux and Windows on their computers.
Shares of Novell's Linux rival, Red Hat (Nasdaq: RHAT) have fallen mid-day on speculation the partnership will increase competitive pressure. Just last week, Red Hat was dealt another blow after Oracle (Nasdaq: ORCL) said it will provide enterprise class support for Linux at a cheaper price.
Microsoft is expected to make the Linux announcement at a press conference in San Francisco, which is scheduled for 2PM PST.
Shares of Novell are up 15.3% to $6.77 in mid-day action Thursday. Red Hat is down 4.8% to $15.64.