IBM eyes $6.5 billion Sun acquisition

 

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By Stuart Turton

Posted on 18 Mar 2009 at 08:46

IBM is in talks to acquire Sun Microsystems for $6.5 billion, according to reports.

The report comes courtesy of The Wall Street Journal which claims IBM is looking to offer a greater range of services in the face of increasing competition from companies such as HP.

If the story pans out, the acquisition of Sun would be the largest acquisition in IBM's history, eclipsing the purchase of Cognos for which it paid $5 billion for last year.

The $6.5 billion would translate into a premium of nearly 100% over Sun's $4.97 closing share price on the Nasdaq yesterday.

According to the paper, Sun has approached a number of large technology companies over a possible acquisition. HP is thought to have already declined the offer.

Both IBM and Sun declined to comment on "rumour and speculation".