IBM Sun still talking?

News and rumour from the USA sggests that IBM is ready to resume Sun takeover talks. Ten days ago negotiations broke after the two companies supposedly failed to agree on a price and other terms of a proposed acquisition. IBM apparently would go no higher than $7 billion, which Sun saw as under-valuing a business with $2.7 billion reserves in cash and short-term investments. In an indication of what the market is planning should Sun fail to find a buyer, Dell has launched a marketing offensive against the company with a campaign to offer Sun customers “an immediate path from legacy data centres to more open, flexible standards-based technology.” This may well throw up some interesting cost reduction opportunities for canny negotiators; either by swiching from Sun to a lower priced Dell alternative or by using Dell as a threat to encourage Sun to reduce their existing prices. What ever happens, it will be an interesting period ahead for Sun users.

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