 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| . |  |
. |
Sun shares down after IBM takeover falls apart
New York (AFP) April 6, 2009 Shares of Sun Microsystems Inc. plunged more than 20 percent on Wall Street on Monday following reports that computer giant IBM had withdrawn its seven-billion-dollar takeover bid. Sun shares closed at 6.56 dollars in New York, a loss of 22.73 percent on the day. IBM lost 0.65 percent to close at 101.56 dollars. Sun's slide on Wall Street followed reports in The Wall Street Journal and other publications that Sun's board had rejected a formal acquisition offer by IBM on Saturday, claiming that the offer price from "Big Blue" was too low. The newspaper said Sun's board had sent a notice terminating IBM's agreement for exclusive negotiations on a buyout, effectively breaking off the talks. In return, IBM withdrew its offer to buy Sun, the Journal said. IBM last week cut the price of its takeover bid to between nine and 10 dollars per share from 10 to 11 dollars per share. A purchase of Sun would have been the largest in IBM's history, in line with chairman Samuel Palmisano's recent pledge not to sit back but rather engage in "strategic acquisitions." IBM is one of the few major US corporations to have weathered the global economic slowdown, ending 2008 with 12.9 billion dollars in cash and marketable securities on hand. Several analysts, however, questioned the benefits for IBM to purchase Sun, which owns the rights to the Java programming language and MySQL open source database software, but has been running up big losses recently. An IBM-Sun deal also appeared certain to have drawn the attention of anti-trust regulators. According to the Journal, the combined companies would have accounted for 42 percent of total server market revenue and 65 percent of the market for servers based on the Unix operating system. IBM is the largest server manufacturer, followed by Hewlett-Packard, Dell and Sun. The first reports of IBM's interest in Sun came just days after networking giant Cisco Systems Inc. announced it too would begin building servers as part of a next-generation data center platform for corporations. Share This Article With Planet Earth
Related Links The Economy
Commentary: Globalization globaloney
Washington, April 6, 2009 The prophets of globalization who saw a new world order ushering humanity into a new age of plenty for all are now adding a little crow -- not yet enough to qualify as humble pie -- to their editorial menus. |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
del.icio.us
Digg
Reddit
YahooMyWeb
Google
Facebook