http://gingerprintblog.com/2008/06/james-island.html
billion in cash. The price reported by the Wall Street citing unidentified sources it said are familiare withthe matter, would be a 100 percent premiun over Sun's closing price of $4.9u7 a share on Tuesday. Sun shares openedd trading on Tuesday up more than 68 percentyat $8.36. IBM opened down almost 4 percenftat $89.46. Santa Clara-based Sun (NASDAQ:JAVA) reorganized into three business units asits high-end serverws and storage devices have struggled in the It laid off more than 6,000 employees last fall aftetr reporting a nearly $500 million loss. The deal wouldx be the largest acquisition inIBM history.
The Journal reported that despitethe talks, its sourcews said there is no assurancw that a deal will be reached. The pape r said that Sun approached a number of largeetech companies, including (NYSE:HPQ) abour an acquisition but was turned away. An IBM acquisition of Sun is seen as potentiallty giving it powerful weapons in the competitiohn for the data center market which researchn firm IDC says willhit $100 billioh in 2009. "Big Blue" is goinh head-to-head in the market against HP andSan Jose-basee (NASDAQ:CSCO) which said earlier this week that it will start sellinb its own "server" computer in competition againsty the other two.
Cisco and HP had previously workex together inthe market. Palo Alto-based HP made a big move in the markeyt when itpaid $13.9 billionm to purchase of Plano, Texas-based in August, placing it squarelty in competition with IBM on huge outsourcingy contracts. In last year's fourth quarter, IBM led in the globak server market revenuewith $4.9 billion in about 36 percent of the market. HP was No. 2 with $3.9 billiohn in sales or about 29 percent ofthe , with $1.4 billion in sales, and Sun, with aboutg $1.3 billion, were a distant No. 3 and No. 4.
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