Skip to: Content
Skip to: Site Navigation
Skip to: Search
WEDNESDAY, NOVEMBER 25, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


1

IBM, Sun Break Off $7B Merger Talks

Share

(Newser) – IBM withdrew a $7 billion offer to buy Sun Microsystems this weekend after Sun's board called the bid too low, the Wall Street Journal reports. Sun also worried that IBM sought too much leeway to walk away from the deal if antitrust regulators challenged the merger, insiders say. People expected Sun to fetch around $11 per share, but as the company demanded an ironclad deal, IBM's offer sank to $9.40 per share.

Sun has terminated IBM's right to exclusive talks, but no word yet on whether other companies are interested. Sun's investment bankers knocked on doors of major info-tech companies this winter, after IBM expressed interest, but received no other takers. Perhaps these developments are all late-stage brinkmanship leading to a merger down the road, the Journal reports.

Samuel J. Palmisano, IBM Corp.'s chairman and CEO, speaks at the Council on Foreign Relations Thursday, Nov. 6, 2008 in New York.
Samuel J. Palmisano, IBM Corp.'s chairman and CEO, speaks at the Council on Foreign Relations Thursday, Nov. 6, 2008 in New York.   (AP Photo/Mark Lennihan)
A young woman walks past the IBM logo at the 2009 CeBIT technology trade fair on March 3, 2009 in Hanover, Germany.
A young woman walks past the IBM logo at the 2009 CeBIT technology trade fair on March 3, 2009 in Hanover, Germany.   (Getty Images)
In this Nov. 24, 2008 file photo, an IBM office is shown in New York.
In this Nov. 24, 2008 file photo, an IBM office is shown in New York.   (AP Photo/Mark Lennihan, file)
In this Nov. 14, 2008 file photo, the exterior view of Sun Microsystems Inc. headquarters is shown in Santa Clara, Calif.
In this Nov. 14, 2008 file photo, the exterior view of Sun Microsystems Inc. headquarters is shown in Santa Clara, Calif.   (AP Photo/Paul Sakuma, file)
Sun Microsystems Inc. CEO Jonathan Schwartz gestures during a Sun conference in San Francisco, May, 6, 2008.
Sun Microsystems Inc. CEO Jonathan Schwartz gestures during a Sun conference in San Francisco, May, 6, 2008.   (AP Photo/Paul Sakuma)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
1 comment
VIEWING:
 
Sniffer
Apr 6, 09 11:41 AM CDT
This comment has been removed by Newser’s community. You must be logged in to view this comment. Reply
Vote up! Vote down!
0
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

302 Stories

 GM Won't Sell Opel After All 

European operations won't go to Canadian outfit

Nov 3, 09 7:47 PM CST
(Newser) - General Motors backed out today on a deal to sell Opel, its European arm, to a Canadian parts supplier and its Russian banking partners. The GM board’s move reflects an uptick in the auto business, the Financial Times reports, and will also be a blow to the German government,... More »

MORE ABOUT:
Magna International Inc. • Germany • General Motors • mergers and acquisitions • auto industry • Opel • Sberbank

Buffett Bets on Recovery, Buys Burlington for $26B

Deal will be Berkshire Hathaway's largest ever

Nov 3, 09 8:41 AM CST
(Newser) - Berkshire Hathaway has agreed to buy up the 77.4% of railroad operator Burlington Northern Santa Fe it didn’t already own for $26 billion, in what would be Warren Buffett’s largest acquisition ever. “It’s an all-in wager on the economic future of the United States,”... More »

MORE ABOUT:
Warren Buffett • mergers and acquisitions • acquisition • Berkshire Hathaway • railroad • Oracle of Omaha • Burlington Northern Santa Fe

Stanley Adds $4.5B Tool to
Its Belt: Black & Decker

Hand-tools giant merges with power-tools leader

Nov 2, 09 6:21 PM CST
(Newser) - Two of America’s iconic tool companies are merging, with Stanley buying up Black & Decker in a deal worth $4.5 billion in stock. Stanley Black & Decker, as it will be known, combined complementary facets of the business: B &D is No. 1 in power tools and,... More »

MORE ABOUT:
mergers and acquisitions • tools • Black & Decker • Stanley Works • hand tools • power tools

302 Stories


Trust-busters may look at IBM-Sun deal
Reuters

Merger would forge powerful tech company
eWeek

Deal might force Colo. layoffs
Denver Business Journal


Business  •  Technology 
TwitterFollow @NewserBusiness on Twitter

 
Silicon Valley • mergers and acquisitions • IBM • Sun Microsystems

from our news partners