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Sun Stock down 23 percent after IBM walks

Looks like Microsoft/ Yahoo all over again
By: Sean Kalinich | Posted: Apr 7, 2009 3:26 pm
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Is the IBM/Sun deal another Microsoft/Yahoo situation? On the surface it might seems so. Only Saturday that Sun Rejected IBM's offer and now IBM has walked.

 

It is interesting to see that IBM was offering about one dollar less per share than what Sun had wanted. They also went so far as to terminate the exclusive talks between the two.

 

Sun originally agreed to the lower price with the condition that IBM buys them regardless of any Anti-Trust investigations.

 

Read more here.

 

Sun Stock down 23 percent after IBM walks
The reports said that Sun's board rejected a formal acquisition offer by IBM on Saturday, sending a notice terminating Sun's deal to hold talks exclusively with IBM. In response, IBM reportedly withdrew its offer to acquire Sun on Sunday.

 

Last week, the Wall Street Journal had said that IBM was close to finalizing a deal to acquire Sun for $9.55 per share in cash. The offer was said to be about a dollar per share shy of Sun's earlier expectations.

 

The Journal noted that Sun agreed to lower its takeover price to between $9 and $10 per share from $10 to $11 on the condition that IBM commits to acquiring it regardless of a government antitrust review.

 

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