Sun Microsystems targeted in IBM acquisition?
by Stevie Smith - Mar 18 2009, 17:00
Is IBM staring at the Sun? Image: Sun Microsystems.
European shares attributed to Sun Microsystems have leapt substantially today following the emergence of a Wall Street Journal report claiming that technology giant International Business Machines (IBM) is on the verge of purchasing the company for a minimum sum of $6.5 billion USD.
Specifically, single share values increased from $2.28 USD to $6.00 USD on the floors of Frankfurt during early morning trading – a substantial jump of 61 percent – after WSJ reported that sources “familiar with the matter” had revealed that IBM and Sun Microsystems were engaged in ongoing talks regarding a possible acquisition.
If the report proves to be true, IBM’s base offer of $6.5 billion would equate to 100 percent more than Santa Clara-based Sun Microsystem’s current stock market value. IBM’s stock value fell by a single percent after news of the rumoured takeover first surfaced.
At time of posting, neither IBM nor Sun Microsystems (Java, OpenOffice) have released official comment regarding the purchase. However, current online speculation suggests the multi-billion dollar deal could be given the green light as early as next week.
IBM’s current largest acquisition dates back to January 31 of 2008, at which time it spent some $5 billion USD for Ontario-based software company Cognos Incorporated.
Want regular updates from The Tech Herald? Follow us on Twitter.
Comment on this Story