CIO

IBM discounts Sun offer

Sun accepts a revised, cut-price offer from IBM after promising to push through with an acquisition in the face of 'intense regulatory scrutiny', according to the Wall Street Journal.

Sun has accepted a revised, cut-price offer from IBM after promising to push through with an acquisition in the face of "intense regulatory scrunity", the Wall Street Journal has reported. The newspaper first reported rumours of an approach by IBM to Sun last month. At the time, the deal was thought to be worth US$6 billion in cash, which would make it IBM's largest-ever acquisition.

But overnight the WSJ reported that IBM had cut its offer by between US$9 and US$10 per share.

Sun had accepted the offer in exchange from stronger reassurance form IBM that it would get the deal done regardless of regulatory concerns, the Journal reported, citing unnamed people familiar with the transaction.

Neither company has confirmed that negotiations are underway.

Read more at MIS Australia.