Sun Microsystems would be willing to resume acquisition talks if International Business Machines makes a stronger commitment to complete the purchase, two people familiar with the matter said.
The companies are locked in a stalemate after negotiations fell apart almost two weeks ago, said the people, who declined to be identified because the information is confidential.
There were no discussions as of yesterday and each company is waiting for the other to make a move, the people said.
IBM, the world’s largest computer-services company, withdrew an offer valued at about $7 billion after Sun broke off exclusive negotiations earlier this month.
Sun balked because there were no guarantees that IBM would stick with the takeover if the companies faced challenges such as an antitrust review, a person familiar with the matter said last week.
Sun chief executive officer Jonathan Schwartz was in favour of a deal, although he ultimately voted with the rest of Sun’s board to reject the offer because the price was too low and there was little certainty that the merger would close, that person said.
A purchase would help IBM chief executive Sam Palmisano bolster the company’s sales of computer servers, which run corporate networks and Web sites. With Sun, IBM would control almost half of the server industry, whose sales declined 14 per cent to $13.5 billion in the fourth quarter, according to researcher IDC.
Shawn Dainas, a spokesman at Santa Clara, California-based Sun, declined to comment. IBM’s Edward Barbini also refused to comment.
Before today, Sun had lost about 28 per cent of its value since the talks broke down. The stock climbed as high as $6.80 early in the session before reversing course after CNBC reported that IBM isn’t interested in a deal at any price.
The stock fell 5 cents to $6.08 by 9:54 am New York time (2.54pm Irish time) on the Nasdaq Stock market.
IBM shares rose $1.45 to $100.30.
Bloomberg