WSJ: IBM Lowers Takeover Bid for Sun Microsystems

Authored by Mark Hefflinger on April 2, 2009 - 8:33am.

Santa Clara, Calif. - IBM (NYSE: IBM) has lowered the amount that it is willing to pay for server maker Sun Microsystems (NASD: JAVA), The Wall Street Journal reported on Thursday.

Citing people familiar with the matter, the paper's web site reported that IBM has cut its proposed takeover price to $9-$10 a share, down from $10-$11 as the companies has discussed previously.

Sun reportedly is willing to accept the price, provided IBM doesn't back out of the deal in the face of an intense antitrust review that is expected.

If consummated, it would mark the largest acquisition in IBM's history, helping to strengthen its position against rival HP.

IBM currently leads the world's server market with a 31.4% market share, according to IDC. HP is second (29.5%), Dell third (11.6%) and Sun fourth (10.6).

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http://online.wsj.com/article/SB123869375752683145.html