Steven Towns

IBM (IBM) is likely to pay between $10 and $11 a share for Sun Micro (JAVA). Deal expected this week. JAVA +79% to $8.87. (WSJ)

If I were an IBM shareholder I would not be happy about this reported deal at all. Surprisingly, IBM is only down about 2.3% last check. No need to pay such a huge premium, especially given how low Sun has traded and split shares, and in addition to considering the current and likely continually deteriorating economy. Both IBM and JAVA short trades, assuming won't happen? IBM snaps back, JAVA snaps in half.