Amit Kumar

Sun Micro: Put Spreads to Play Merger Arb?

IBM lowered its intended takeover price for Sun Microsystems to between $9 and $10 a share, according to people familiar with the matter. Sun agreed to accept the lower price in return for stronger commitments from IBM that it will complete the deal despite facing intense regulatory scrutiny. The companies previously discussed a price in the range of $10 to $11 a share. The two sides continue to negotiate, and it remains unclear when they will reach a deal. - WSJ Report