Bladewatch.com

Bloomberg

April 6 (Bloomberg) — International Business Machines Corp.’s talks to buy Sun Microsystems Inc. for $7 billion collapsed after the two companies failed to agree on a price and terms of the deal, a person familiar with the matter said.

Sun’s board, headed by co-founder Scott McNealy, informed Armonk, New York-based IBM on April 4 it was breaking off exclusive negotiations, according to the person. Sun, the developer of the Java programming language, rejected an offer of about $9.40 a share as too low, said the person, who declined to be identified because the talks are private.

The breakdown of what would have been the biggest technology deal of the year raises the pressure for McNealy to find another suitor as the server-maker heads for its biggest annual loss in six years because customers are cutting orders. The offer represented an 11 percent premium to Sun’s latest stock price even after expectations of an agreement drove up the shares 71 percent in the past 2 1/2 weeks.

We’ll have to see if there are any further announcements regarding the deal, I wonder if the deal did complete how this would change/energize competition and innovation of the server/blade platform and the open source community?

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.