Hedge fund, Elliott Associates, is looking to buy software company, Novell, for $1.8 billion, The Wall Street Journal reports. Elliott already holds an 8.5% stake in Novell, which currently has a cash balance of nearly $1 billion.

Elliot is planning to pay $5.75 a share, or a premium of 21% over Novell's closing price. Several large software makers may consider bidding as they could sell their business programs alongside Novell's version of Linux, adds Reuters.

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