Sun Microsystems Inc. surged the most ever in German trading after the Wall Street Journal reported International Business Machines Corp. is in talks to buy the company for at least $6.5 billion.
Sun Microsystems jumped as much as 61 percent to 6 euros in Frankfurt trading. The offer would value Sun’s stock at more than double the closing price of $4.97 in the U.S. 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 $53.1 billion market for computer servers. Sun is projected to post its third consecutive quarterly loss as Chief Executive Officer Jonathan Schwartz seeks to weather the global recession by slashing as many as 6,000 jobs and offering lower-priced products.
Sources: IBM in Talks to Buy Sun in Bid to Add to Web Heft MATTHEW KARNITSCHNIG, WILLIAM M. BULKELEY and JUSTIN SCHECK WSJ, MARCH 18, 2009 http://online.wsj.com/article/SB123735970806267921.html
Sun Microsystems Surges on IBM Acquisition Report Robert Valpuesta Bloomberg, March 18 2009 http://www.bloomberg.com/apps/news?pid=20601087&sid=a_0CHRWCFx4w&