Sun to IBM: We'll talk if You Buy

Sun is feeling the heat.

It seems the microprocessor company is desperate to sell. Bloomberg today reports that the company has told IBM that it will resume talks if it makes a “stronger commitment” to close the deal. In other words, Sun doesn’t want any time wasters and the company is all for talking with IBM as long as it’s turkey they’re talking.

During the first week of April, IBM heightened takeover talks when it put forward a $9.55 per share or $7 billion offer for Sun. Citing people familiar with the discussions (and not authorized to speak publicly, oops), the NYT sources said the new agreement would restrict IBM’s ability to walk away from the deal.

IBM later reduced its offer from $9.55 per share to $9.40 on, following a legal review. This offer was then presented to Sun’s board and the board recoiled. While the offer was not rejected the right off the bat, reports say Sun wanted wanted certain guarantees that IBM considered “onerous.” Sun then said it would no longer abide by its exclusive negotiating agreement with IBM and the latter withdrew its offer completely.

Bloomberg cites people familiar with the matter as saying Sun is willing to breathe new life into old talks if IBM makes a stronger commitment to close the acquisition. It looks like Sun is getting desperate. When initial talks collapsed the media looked for a possible plan b for the struggling company and came up near empty handed. Sun analysts suggested that the best thing to do might be to sell some parts of the company but not others as it was unlikely any one company would want to buy the entire company, undesirables and all.

  • Greatwalrus
    Please, oh please buy Sun, IBM.

    I think IBM is the best possible choice for securing some of Sun's best software offerings.

    Granted, poor old Sun will not get that $9.40 they missed out on.
  • Blessedman
    Well I ask you out if you tell me up front what your answer will be... Stinks of desperation!
  • jsloan
    if i were ibm i would hold off, causing the sun stock to plung, and then get sun at a lower price. mad did sun, like yahoo, mess up when ibm first made their generous offer.
  • mamw93
    I hope Sun buys them.
  • Niva
    I'm sure if IBM holds off just a tad longer some investor in Abu Dabi will buy all of Sun with his pocket change. Sadly that might come true...
  • hemelskonijn
    Maybe they should just sell their hardware to genesi and their software to IBM or who ever bids the most.

    Some how i would like genesi to get a hold of a bigger market i think they can and will build really nice and innovating systems using the SPARC structures and CPU's.

    In a perfect world ...
  • city_zen
    Where's Google when you need it most ...?
  • lamorpa
    First you're talking about Sun, then you're talking about a 'microprocessor company'. Which one are you talking about? Other than both being nouns, one is not a substitute for the other. Is the article just written stream-of-consciousness and it sounded good as it was written?