WSJ: IBM Deal for Sun Microsystems on Verge of Collapse

Authored by Mark Hefflinger on April 6, 2009 - 11:38am.

Santa Clara, Calif. - IBM's (NYSE: IBM) potential $7 billion acquisition of server maker Sun Microsystems (NASD: JAVA) may be on the verge of collapse, after Sun's board rejected the company's takeover offer over the weekend, The Wall Street Journal reported.

Sun's board also reportedly has terminated a deal to exclusively negotiate with IBM, with board members split over what move to make next.

The news comes days after IBM cut its proposed takeover price to $9-$10 a share, down from $10-$11 as the companies has discussed previously.

The news sent shares of Sun down 23% in Monday's trading.

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