Software Company Novell Inc. on Saturday announced that its board has disapproved an unsolicited bid from hedge fund Elliott Associates LP to take over the company for $5.75 per share in cash, calling the bid as completely inadequate.

In addition, Novell in a press release posited that the bid undervalues the business software maker’s franchise and growth prospects.

Elliott Associates, which possess an 8.5% stake in Novell, earlier this month, extended an offer to buy the rest of the company for about $1.8 billion.

It is post claimed that its board has authorized a "thorough review of various alternatives" with a sole aim to boost stockholder value.

Among these alternatives, are strategic partnerships and alliances, joint ventures, a stock repurchase or cash dividend, a recapitalization and a sale of the company.

Elliott Associates uncovered its $5.75 a share offer on March 2, making Novell's stock to register a 28 percent rise as investors hoped it would fuel a bidding war and put the world's No. 2 maker of the open source Linux operating system into play.