Friday, September 22, 2006

Novell Gets Delisting Notice

Novell reported in a regulatory filing this week that it has received a delisting notice from the Nasdaq. Novell said that the letter was issued because the firm did not file a timely quarterly report, due to an ongoing voluntary review of its historical stock-based compensation practices. The firm said it would appeal the determination. Novell is one of a very large number of high tech firms scrutinizing their stock options compensation, after an SEC crackdown on back dating of stock options. Novell also said in its filing that it has received a default notice from Wells Fargo Bank on a $600M, 0.50% convertible senior debenture, as a result of the delay in filing its 10Q.