Monday, April 06, 2009

IBM Talks Teeter as Sun Board Splits -

About to join the Jerry Yang club?…

Toni Sacconaghi, an analyst with Sanford C. Bernstein, said the Sun "board is going to have a lot of explaining to do if they turned down an offer of $9.40 a share," noting Sun's recent stock lows and the deteriorating outlook for tech spending. He added that the public disclosure of the talks with IBM "casts uncertainty among customers about Sun's future."

In Silicon Valley, rivals poked fun at IBM for pursuing the fading company. But IBM -- whose earnings have grown $5 billion since 2004 to $12.34 billion last year -- has been outpacing most of Silicon Valley recently, and would stand to leverage Sun into even more gains. Adding Sun's $13 billion in sales would put IBM neck-and-neck with Hewlett-Packard Co. as the world's largest information-technology purveyor, with combined revenues of $117 billion and 41% of the $50 billion server market.

IBM Talks Teeter as Sun Board Splits -

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