IBM Sun Microsystems deal collapses

The $7 billion IBM Sun Microsystems acquisition talks have failed.

The NYT says IBM lowered its offer to $9.40 per share, down from $9.55, on Saturday, prompting Sun’s board to reject the offer. Sun later said it would void an exclusive negotiation clause with IBM giving opportunity for a buyout with another company.

IBM ultimately completely withdrew itself from the acquisition talks.

IBM lowered its offer to $9.40 per share after an extensive review with a legal team of more than 100 lawyers (not to mention all the other analysts and personnel involved) considered possible antitrust issues. Additionally, IBM lowered its offer because of extensive Sun executive payments that would have been required that IBM somewhat overlooked.

The acquisition would have strengthened IBM’s position as the most dominant supplier of high-end Unix servers.

A deal is still possible over the coming weeks assuming a mutually beneficial agreement can be determined, and given increased pressure from significant Sun investors who favor the deal.

tag TAGS: , ,
Short URL:
b2p Ensure that you follow us on Twitter and Like us on Facebook
Hercules holds a B.Comm Finance from Ryerson University in Toronto, Canada. He is a Chartered Financial Analyst (CFA) level 3 candidate. He was previously a contributor at FiLife, a finance website owned by Dow Jones and IAC. Write to [email protected]
We are perfectly committed to the highest ethical and professional codes of conduct and standards in the industry on a firm wide basis. Learn more about us, our contributors, and our governance
We encourage you to comment. Comments are moderated. Comments that are abusive, off-topic, have marginal substance, or include promotional content will be removed. We cannot facilitate requests to edit or remove comments, or explain moderation decisions

Business 2.0 Press publishes exclusive business tech news and analysis covering start-ups to large-caps from Bay & Wall streets since 2008 from a group of highly knowledgeable industry professionals that abide by the toughest industry codes of conduct and professional standards lightMore

lightAdd value by subscribing (RSS)

logo has the most stock ratios for public companies. Get the most comprehensive micro insight on public firms available on the web, all for free.
Stock Fractionsgo


Colon cancer is one of the leading causes of death. Irrespective of family history, everyone is exposed to the risk. About 90% of colon cancer cases begin from non-cancerous tumors, polyps, which could form in the large bowel. Screening with a colonoscopy will painlessly remove any polyps hence almost entirely reducing your risk of developing the horrible disease. The good news is that about 90% of colon cancer cases are preventable through a simple (yes, simple) colonoscopy.
Learn moreatom
Public service message from Business 2.0 Press