The ongoing highly publicised talks between IBM and Sun have reportedly fallen apart reveal reports due to difference of opinion between Sun’s board members over the new bid offer proposed by IBM.
The Wall Street Journal reports that Sun Microsystem’s board rejected the revised proposal of IBM speculated to be in the range of $9-10 per share from the earlier bid of $10-11 per share. But this was not before the reported slit in opinion of Sun’s board over the offer with company Chairman and co-founder, Scott McNealy, opposing the transaction while a group led by Chief Executive Jonathan Schwartz in favour of the deal.
Reports say that Sun has already sent a notice on Saturday to IBM terminating the exclusivity agreement signed between the two parties over the deal. Subsequently IBM withdrew from the bid on Sunday.
The fall out of talks is expected to result in further stock price erosion of Sun Microsystems. For IBM the end of the deal will result in a missed opportunity to race ahead of its nearest rival, HP in terms of market share.
Reports also say that the deal mattered more for Sun as it may find it difficult to attract new suitors to the deal.
The deal has been kept under wraps by the two parties involved with updates and developments originating only from sources close to the talks.