Linked by Thom Holwerda on Wed 8th Apr 2009 12:27 UTC
In the News If all this works out, then IBM will be one of the luckiest companies in the world. eWeek has learned a lot of details regarding the IBM-sun acquisition talks, as well as that today, the Sun board is holding another meeting to discuss the talks. The outcome could be that IBM would buy Sun after all - but at a much lower price since Sun's shares fell 25% after it had broken off the negotiations with IBM.
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No (much) lower price
by vaette on Wed 8th Apr 2009 12:54 UTC
vaette
Member since:
2008-08-09

It is highly unlikely that IBM can offer a price (much) below their previous offer. In fact, Sun was trading below $5 before the offer was ever heard of, the price was only driven up to the $8-9 region because of the IBM deal which would value Sun at that level. As such, the current drop to $6-7 is not that relevant, Sun is still trading much higher than it was when the talk about the original offer was first making the rounds.

Significant premiums are really par for the course in this type of deal.

Edited 2009-04-08 12:55 UTC

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