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.