IBM watches Sun deal turn sour

 

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By Stuart Turton

Posted on 6 Apr 2009 at 10:34

IBM's acquisition of Sun has fallen through after the two failed to agree a price, according to reports.

The two companies are thought to have been in negotiations since the end of March, with IBM reportedly offering $7 billion for the Solaris maker.

According to the Wall Street Journal, talks collapsed on Sunday as the two firms continued to haggle on price. Sun has reportedly now terminated exclusive negotiations with IBM, while Big Blue has withdrawn its offer. IBM's final offer is thought to have been $9.40 per share.

Sun is also reported to be concerned about an escape clause allowing IBM to walk on the deal should it encounter regulatory hurdles.

This is a possibility, given that any deal would extend IBM's lead at the top of the server market and place it in control of Sun's Solaris, Java and other technologies.

Neither company was available for comment at the time of writing, though so far they have refused to even discusss whether talks are underway.