VMware, Novell Deal for Linux Business Close, Report

Virtualization giant VMware is close to buying Novell's Linux business, according to a report. Another report said that Novell would sell itself in two parts and is a few weeks away from signing a deal.

LOS ANGELES, Sept 16 (Reuters) - VMware Inc (NYSE:VMW) is in advanced talks to buy Novell Inc's (NASDAQ:NOVL) 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 percent higher at $6.05 on Nasdaq. They had risen more than 6 percent on Wednesday on the Post's report. VMWare ended down 1.5 percent at $84.76 on the New York Stock Exchange. (Reporting by Alex Dobuzinskis: Editing by Gary Hill)