IBM Corporation And Sun Microsystems, Inc. Break Off Talks
Reuters reported that IBM Corporation and Sun Microsystems, Inc. broke off acquisition talks after Sun Microsystems, Inc. indicated it was unhappy with IBM Corporation’s offer of $9.40 or below per share, a source with knowledge of the matter said. The source, who was not authorized to speak publicly about the matter, said it was unclear if talks between the two companies would resume. [ link ]
IBM’s talks to acquire smaller computer and software rival Sun Microsystems Inc broke down on Sunday after Sun rejected IBM’s $7 billion offer, a source with knowledge of the matter said.
The collapse of negotiations, if final, is likely to hurt Sun’s shares as a buyout was seen as a means of survival for the once-storied Silicon Valley company, which has been losing market share. A deal would also have helped IBM compete more effectively against rivals such as Hewlett-Packard Co. [ link ]
Based on this news, I am shorting JAVA in the pre-market starting 8 a.m. and plan on selling anywhere around the mid five dollar price range.
Also, keep a close eye on SPNG and CTIC as they should be at very favourable prices due to their current positions being heavily overbought.
|
About Michael: A young and savvy, yet experienced and accomplished investments mogul since ‘01; Michael has amassed a fortune as a private self investor. Recently starting his own successful blog and turning it in to a corporation — MIV Investments Inc., a company offering advice to thousands of people worldwide and attracting contracts from various reputable sources. His articles and publications have been linked to Forbes, CNN Money, Reuters, Bloomberg, and many other top worldwide mainstream media sources. |
