IBM expected to buy Sun Microsystems

IBM is tacit to be in talks with competitor SUN Microsystems over an $8bn occupation that would bring collectively two of America‘s biggest firms.

It would also see the rather buttoned-up East Coast style of IBM, based north-east of New York in Armonk, softened by the more entrepreneurial attitude to business of Sun, based in Santa Clara, California.

While neither side would give statement today, IBM is believed to have suggested as much as $6.5bn in cash for Sun, which has approximately $1.5bn in cash on its balance sheet giving the entire agreement a value of $8bn.

Shares in Sun, which have plunged in the past year in part because of its dependence on financial services clients, leapt as much as 80% on the news. Shares in IBM, in the meantime, were marked somewhat lower on uncertainties that it could be spendthrift its cash pile on a company that does not have a palpable cultural fit.

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March 19, 2009. Tags: , . business.

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