IBM And Sun Talks May Collapse

Posted Apr 5, 2009

The NYT reports that IBM’s acquisition talks with Sun may collapse. Sun’s board rejected IBM’s offer because it was too low. Sun sent IBM a notice terminating an agreement for exclusive negotiations. The letter breaks off the acquisition talks.

IBM’s $7 billion offer was above Sun’s market cap. After due diligence, IBM lowered its offer from $9.55 a share to $9.40 a share.

Sun has been looking to sell for over a year. Now that its exclusive contract with IBM has ended, the company is free to pursue other buyers.