The New York Times is reporting that the proposed merger between IBM and Sun Microsystems is apparently dead because IBM has pulled the $7 billion offer off the table:
After the legal review, I.B.M. shaved its offer Saturday from $9.55 a share, the offer on the table late last week, to $9.40 a share, said one person familiar with the talks. The offer was presented to Sun’s board on Saturday, and it balked. The Sun board did not reject the offer outright, but wanted certain guarantees that the I.B.M. side considered “onerous,” according to that person.
Sun said it would no longer abide by its exclusive negotiating agreement with I.B.M., a second person familiar with the discussions said. On Sunday, I.B.M.’s board decided to withdraw the offer.
The question is, where does Sun go from here? Does it try to make a deal with somebody else? Will customers be scared away from buying Sun product? It’s hard to say. Maybe IBM will come back to the table and get a deal done at a lower price? Perhaps Sun will beg IBM to come back to the table as they’ve been basically shopping themselves around for some time.
We’ll see what the next move is in this game…. If there is one.
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This entry was posted on April 5, 2009 at 7:21 pm and is filed under Commentary with tags IBM, Sun. You can follow any responses to this entry through the RSS 2.0 feed.
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IBM/Sun Deal Is Off…… For Now
The New York Times is reporting that the proposed merger between IBM and Sun Microsystems is apparently dead because IBM has pulled the $7 billion offer off the table:
After the legal review, I.B.M. shaved its offer Saturday from $9.55 a share, the offer on the table late last week, to $9.40 a share, said one person familiar with the talks. The offer was presented to Sun’s board on Saturday, and it balked. The Sun board did not reject the offer outright, but wanted certain guarantees that the I.B.M. side considered “onerous,” according to that person.
Sun said it would no longer abide by its exclusive negotiating agreement with I.B.M., a second person familiar with the discussions said. On Sunday, I.B.M.’s board decided to withdraw the offer.
The question is, where does Sun go from here? Does it try to make a deal with somebody else? Will customers be scared away from buying Sun product? It’s hard to say. Maybe IBM will come back to the table and get a deal done at a lower price? Perhaps Sun will beg IBM to come back to the table as they’ve been basically shopping themselves around for some time.
We’ll see what the next move is in this game…. If there is one.
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This entry was posted on April 5, 2009 at 7:21 pm and is filed under Commentary with tags IBM, Sun. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.