International Business Machines or better known as IBM is in talks to acquire Sun Microsystems, the Wall Street Journal said, citing people familiar with the matter. IBM is likely to pay at least $6.5 billion in cash to acquire Sun, the people told the paper.
That would translate into a premium of about 100 percent over Sun’s closing price Tuesday of $4.97 a share on the Nasdaq, the paper said. In recent months, Sun has approached a number of large tech companies in the hopes of being acquired, the paper said.
Hewlett-Packard Co declined the offer, the paper said.
Sun is a maker of software and high-end computers. A spokesman for IBM declined to comment to the paper on questions about any talks with Sun.
IBM and Sun could not be immediately be reached for comment by Reuters.