Note: Java programming language owns by Sun Microsystems!
SUN Microsystems surged the most ever in German trading after the Wall Street Journal reported IBM is in talks to buy the company for at least $US6.5 billion.
Sun Microsystems jumped as much as 61 per cent to 6 euros in Frankfurt trading. The offer would value Sun’s stock at more than double the closing price of $US4.97 in the US yesterday, the Wall Street Journal reported, citing people familiar with the plan. An agreement may not be reached, the newspaper said. Officials at Sun and IBM declined to comment.
Buying Sun would help IBM widen its lead over Hewlett- Packard Co. in the $US53.1 billion market for computer servers. Sun is projected to post its third consecutive quarterly loss as CEO Jonathan Schwartz seeks to weather the global recession by slashing as many as 6,000 jobs and offering lower-priced products.
“It’s the war of the data centers, and an acquisition would leave only two or three players left,” said Robert Jakobsen, a Silkeborg, Denmark-based analyst at Jyske Bank A/S in Denmark. “The stock market has not been too good to Sun in the last 12 months,” allowing IBM to buy it at a discount, he said.
Paying at least $US6.5 billion for Sun would be IBM’s biggest acquisition ever. The company bought Cognos Inc. for $US4.9 billion last year to compete with Oracle Corp. and SAP AG in providing software that tracks corporate performance.
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SUN Microsystems surged the most ever in German trading after the Wall Street Journal reported IBM is in talks to buy the company for at least $US6.5 billion.
Sun Microsystems jumped as much as 61 per cent to 6 euros in Frankfurt trading. The offer would value Sun’s stock at more than double the closing price of $US4.97 in the US yesterday, the Wall Street Journal reported, citing people familiar with the plan. An agreement may not be reached, the newspaper said. Officials at Sun and IBM declined to comment.
Buying Sun would help IBM widen its lead over Hewlett- Packard Co. in the $US53.1 billion market for computer servers. Sun is projected to post its third consecutive quarterly loss as CEO Jonathan Schwartz seeks to weather the global recession by slashing as many as 6,000 jobs and offering lower-priced products.
“It’s the war of the data centers, and an acquisition would leave only two or three players left,” said Robert Jakobsen, a Silkeborg, Denmark-based analyst at Jyske Bank A/S in Denmark. “The stock market has not been too good to Sun in the last 12 months,” allowing IBM to buy it at a discount, he said.
Paying at least $US6.5 billion for Sun would be IBM’s biggest acquisition ever. The company bought Cognos Inc. for $US4.9 billion last year to compete with Oracle Corp. and SAP AG in providing software that tracks corporate performance.
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