VMware seen eying Novell unit

LOS ANGELES, USA: VMware Inc is in advanced talks to buy Novell Inc's Linux operating system business, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The paper reported that private equity-backed software company Attachmate Corp could buy some or all of Novell's remaining assets.

The report came after the New York Post reported Novell, the world's No. 2 maker of the open source Linux operating system, will sell itself in two parts and that it is three to four weeks away from signing a deal.

Shares in Novell closed 2.5 per cent higher at $6.05 on Nasdaq. They had risen more than 6 per cent on Wednesday on the Post's report. VMWare ended down 1.5 percent at $84.76 on the New York Stock Exchange.