IBM withdraws offer to buy Sun Microsystems
Acquisition talks between IBM and Sun Microsystems have come to an end without an agreement being reached.
Last week, reports stated that a deal was days away. However, the New York Times says IBM withdrew its $7bn bid for Sun on Sunday.
Sun's business has been struggling and last month the company announced 1,500 jobs cuts as part of its plans to slash costs. The companies have been discussing a merger for several weeks, with share prices valued at $9.55 last week.
After a legal review of potential issues such as Sun's contracts with employees and IBM competitors, IBM is said to have reduced the offer to $9.40 at the weekend. Sun responded by calling the bid insufficient and requesting certain guarantees, which in turn led to IBM rescinding the offer.
Prior to news of merger talks, Sun had been trading below $5 a share for a number of months.