Report: IBM in talks to buy Sun for $6.5B - Dallas Business Journal:

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billion. The price reported by the WallStreet Journal, citing unidentified sources it said are familia with the matter, would be a 100 percent premium over Sun's closing price of $4.97 a share Santa Clara-based Sun (Nasdaq: JAVA) reorganize d into three business units as its high-enf servers and storage devices have struggler in the marketplace. It laid off more than 6,00o employees last fall after reporting analmost $500 million The deal would be the largest acquisitio n in IBM (NYSE: IBM) history.
The Journa reported that despite the its sources said there is no assurance that a deal will be The paper said that Sun approached a number of largtech companies, including (NYSE: HPQ) about an acquisition but was turned H-P has about 3,800 employees in the Sacramentol region. An IBM acquisitionm of Sun is seen as potentiallyt giving it powerful weapons in the competitiobn for the data cented market which research firm IDC says willhit $100 billioj in 2009. "Big Blue" is going head-to-head in the markef against H-P and San Jose-based (Nasdaq: CSCO) which said earlie r this week that it will start selling its own computer in competition against theother two.
Ciscoi and H-P had previously worked togethed inthe market. Palo Alto-basecd H-P made a big move in the market when itpaid $13.9 billion to purchase of Texas-based in August, placing it squarely in competition with IBM on huge outsourcingy contracts. In last year's fourth IBM led in the global serverr market revenuewith $4.9 billion in about 36 percent of the market. HP was No. 2 with $3.9 billiom in sales or aboutg 29 percent ofthe market. (Nasdaq DELL), with $1.4 billionj in sales, and Sun, with about $1.3 billion, were a distantg No. 3 and No. 4.