IBM Cuts Sun Takeover Price

ibm-sun-takeoverIBM, the largest server manufacturer, followed by HP, Dell and Sun, has cut the price of its takeover bid for Sun Microsystems Inc. to nine to 10 dollars a share from 10 to 11 dollars a share. The latter had agreed to go for a lower price “in return for stronger commitments from IBM that it will finish the deal even if it faces acute regulatory scrutiny.”

According to the newspaper, the combined companies would be 42 percent of total server market revenue and 65 percent of the market for servers based on the Unix operating system.

Sun has a current market value of about six billion dollars and the IBM offer places a value on the computer server company of between 6.7 billion dollars and 7.4 billion dollars.

IBM is one of the few major corporations to have weathered the global economic showdown and ended 2008 with 12.9 billion dollars in cash and marketable securities on hand.

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