UPDATE 1-Novell says no plans to sell itself

Fri Jun 19, 2009 6:01pm EDT

* Responding to published reports

* Analyst: CFO considered selling all or part of company

SAN FRANCISCO, June 19 (Reuters) - Novell Inc NOVL.O, the the No. 2 publicly held maker of Linux software, said on Friday it has no plans to sell itself after an analyst said the company's finance chief considered the idea.

The company's statement came in a filing with the U.S. Securities and Exchange Commission. Novell said it was responding to inquiries and recently published reports.

Novell shares surged 10 percent Friday after J.P. Morgan analyst John DiFucci wrote in a research note that Novell CFO Dana Russell "entertained the possibility of breaking out some parts of or selling the entire company, in order to maximize shareholder value given the current depressed valuation levels."

DiFucci, who met with Russell Thursday, added that, "this theme of a breakup or entire sale is a newer theme than one we have heard to date and could signal the company's willingness to be acquired."

The shares of Waltham, Massachusetts-based Novell rose 43 cents to close at $4.68 on the Nasdaq. (Reporting by Gabriel Madway; editing by Andre Grenon)

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