Novell, Inc. announced that its board of directors has approved a share repurchase program for up to $200 million of Novell common stock over the next 12 months.
Repurchases will be made from time to time on the open market at the discretion of management based on management’s evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan. Such a plan would permit Novell to repurchase shares when it might otherwise be precluded by insider trading laws, provided that Novell enters into the plan at a time when it is not in possession of material, non-public information and satisfies certain other conditions. The repurchase program may be suspended or discontinued at any time.
Jack Messman, Novell’s chairman and chief executive officer, said, “Our stock buyback is just one of the elements of a plan aimed at enhancing shareholder value and securing Novell’s future as an important provider of solutions to the IT market. The buyback demonstrates the Board and management’s confidence in our financial strength and strategic plan.”