WSJ: IBM, Sun Talks 'Unraveling'
The Wall Street Journal reported Sunday
that the proposed $7 billion dollar deal for IBM Corp. to acquire Sun Microsystems virtually collapsed this weekend.
Unnamed sources told the paper that price IBM offered -- ranging from $9.10 to $9.40 per share -- "wasn't the biggest issue." Instead, a combination of concerns, including how committed IBM is to the acquisition, reportedly left Sun's board "split" over the deal, with Sun co-founder and Chairman Scott McNealy in the against camp. This resulted in Sun turning down IBM's offer on Saturday, and IBM formally withdrawing the offer Sunday.
Reporters William M. Bulkeley and Don Clark wrote that the parties are still communicating via telephone, although the talks can be characterized as "confrontational," They also point out that even if successful, any merger could face difficulties from both European and U.S. antitrust regulators.
As of Sunday night, neither IBM nor Sun have commented on the report or the deal itself.
Read the full The Wall Street Journal story here.
About the Author
Becky Nagel is the vice president of Web & Digital Strategy for 1105's Converge360 Group, where she oversees the front-end Web team and deals with all aspects of digital projects at the company, including launching and running the group's popular virtual summit and Coffee talk series . She an experienced tech journalist (20 years), and before her current position, was the editorial director of the group's sites. A few years ago she gave a talk at a leading technical publishers conference about how changes in Web browser technology would impact online advertising for publishers. Follow her on twitter @beckynagel.