Sun to IBM: We're Willing to Talk Again

Includes: IBM, JAVA
by: Larry Dignan

Sun Microsystems (JAVA) will reportedly be willing to resume takeover talks with IBM if Big Blue says it’ll commit to closing the deal.

Bloomberg reports the news based on two people familiar with the matter (Techmeme). The two companies currently aren’t talking and each one is waiting for the other to make a move.

Gee, I wonder why Sun would be so willing to talk to IBM again….

Fairly obvious eh? But it’s not all about the stock chart. There’s another little problem: Sun doesn’t have any other interested parties. Meanwhile, rivals are preparing campaigns to poach customers. See Dell’s latest move—perfectly timed at the exact moment Sun announced its server refresh.

Wall Street doesn’t appear to be buying into Sun’s prospects. In early trading, Sun spiked, but then quickly retreated. It’s one thing if Sun wants to talk. It’s quite another thing if IBM wants to talk.