“IBM is in talks to buy Sun Microsystems Inc., sources with knowledge of the matter said, a move that could bolster the technology giant against rivals in the high-end computer server market,” Reuters reports.
“International Business Machines Corp. is offering to pay at least $6.5 billion, or double Sun’s Tuesday closing price of $4.97, The Wall Street Journal reported online earlier. Shares of Sun (JAVA) jumped 64% in pre-market trading to $8.16, while IBM (IBM, Fortune 500) shares fell 2% to $90.89,” Reuters reports.
“If they reach a deal, it would be IBM’s largest-ever acquisition, and represent a departure from its recent strategy of focusing on deals to strengthen its software and services businesses, rather than hardware,” Reuters reports.
“BM, which had nearly $13 billion in cash at the end of 2008, declined comment. Its largest acquisition to date is the $5 billion purchase of Canadian software maker Cognos in 2008,” Reuters reports.
“The Wall Street Journal said HP had declined to buy Sun, citing a person briefed on the matter,” Reuters reports. “IBM was the top supplier of servers in the fourth quarter, with a market share of 36.3%, according to market researcher IDC. HP has 29%, followed by Dell with 10.6%, Sun with 9.3%, and Fujitsu with 4.2%.”
Full article here.
[Thanks to MacDailyNews Reader “Robert S.” for the heads up.]
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