A Forrester report released this week said Netscape (NSCP) would do well by purchasing Novell (NOVL). The Internet software maker would benefit from Novell's installed base of more than 60 million users and a team of skilled service technicians, according to a Bloomberg report.
Analysts expect Novell, which is losing market share to Microsoft and a host of other competitors that are luring corporate customers from the aging NetWare 3.0 software, will see its revenues drop this year by 25 percent to $1.5 billion.
Novell's stock, meanwhile, has plummeted 47 percent in the past year to fall below $11 a share. A cheap stock could bring takeover candidates.
Novell and Netscape officials disputed any merger or takeover deal, according to Bloomberg.