
NEW YORK (AP) - Shares of Novell spiked more than 20 percent Thursday afternoon after a report that the company is entering a partnership with Microsoft Corp., the world's largest software maker, to provide support for Novell's distribution of the Linux operating system and improve interoperability with Windows. Citing people familiar with the companies, The Wall Street Journal said that under the terms of the deal, Microsoft will offer sales support for Suse Linux, an open-source operating system sold by Novell.
The operating system competes with Microsoft's Windows operating system. The two companies may also codevelop technologies to make it easier for users to run both Suse Linux and Microsoft's Windows on their computers, according to the report. Microsoft agreed not to assert patent rights over the software that will be incorporated into Suse Linux, according to the report. Novell shares shot up $1.11, or 18.9 percent, to $6.98 in afternoon trading on the Nasdaq, while Microsoft shares were down 6 cents at $28.75 on the Nasdaq Stock Market. Shares of Red Hat Inc., a competing provider of open source software and services, fell 53 cents, or 3.2 percent, to $15.90 on the Nasdaq. Microsoft scheduled an event at 5 p.m. EST in San Francisco.
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