Sun shares dive as IBM buyout talks falter

[April 06, 2009]  SANTA CLARA, Calif. (AP) -- Shares of networking equipment maker Sun Microsystems are sharply lower on fears its buyout talks with IBM are collapsing.

IBM Corp. and Sun Microsystems Inc. were going over final details of a deal that would have seen IBM pay about $7 billion to acquire Sun. But IBM pulled the offer this weekend and Sun terminated IBM's status as its exclusive negotiating partner. That has thrown the acquisition talks into doubt.

IBM was discussing a price of more than $9 per share for Sun. But as investors reacted to the breakdown in talks, they sent Sun shares down $2.31, or 27.2 percent, to $6.18 in premarket trading Monday.

It is unclear whether Sun is still trying to find an alternative suitor to IBM.

[Associated Press]

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