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   Technology StocksAll About Sun Microsystems


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To: QwikSand who wrote (64769)3/18/2009 12:11:22 PM
From: E_K_S
   of 64865
 
Bloomberg reports that The Wall Street Journal says that the offer is $10 to $11.

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To: E_K_S who wrote (64770)3/18/2009 2:19:20 PM
From: QwikSand
   of 64865
 
From WSJ article:

--QS

...If the deal does go through, which could happen as early as this week, IBM is likely to pay at least $6.5 billion in cash to acquire Sun, the people said. Including $1.4 billion in cash on Sun's balance sheet, the total deal value would be about $8 billion, or about $10 to $11 a share. That would translate into a premium of more than 100% over Sun's closing price Tuesday.

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To: QwikSand who wrote (64771)3/24/2009 2:08:05 AM
From: QwikSand
   of 64865
 
Guess it was too good to be true of course. I suspect many of Sun's most pampered engineers would rather go down with the ship than work for IBM, and may well exhibit that preference brazenly during the due-diligence process. They've gone 27 years in their bubble.

From current WSJ article.

--QS

...There are several reasons why investors might be skeptical. For one, the companies remain mum days after reports of a both a possible deal and a lengthy due-diligence process. Also, few others look prepared to compete with IBM for control of the company, which makes the chances slim for a bidding war and a higher premium.

Additionally, IBM may find it faces significant challenges integrating a company with many disparate businesses, and a culture said to be led by engineers, not executives.

To be sure, IBM has the cash to make a deal happen despite the tight financing environment. As of Dec. 31, IBM had $12.9 billion in cash and cash equivalents, and reported a 12% rise in fourth-quarter profit, bucking the trend of other tech bellwethers suffering from slumping spending.

But as early excitement winds down, so too could Sun's share price. The company has been hit by a drop in demand for its high-end servers. Sun has traditionally relied on purchases from the struggling financial-services sector, which was hit early in the current downturn.

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To: QwikSand who wrote (64772)3/24/2009 7:46:36 PM
From: alydar
   of 64865
 
QS,

If the IBM deal does not go through I think JAVA's relevancy in IT is over; completely. The stock price will hit all new lows and customers will bail. They have shopped this sick puppy around for months and only IBM bit the hook.

To think that this company was a pioneer for the internet and now is practically begging someone to purchase it is sad. What is even sadder is that I watched the stock go way up and crash.

Bonehead management got them in this situation and the overpaid Ponytail intellectual is getting paid well to dissolve the joint.

I hope to never experience a stock ride like this again but next time I will be smarter and play with the houses money.

Alydar

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To: alydar who wrote (64773)3/24/2009 8:56:43 PM
From: QwikSand
   of 64865
 
It'll be interesting to see if the deal goes through. Sun is over with one way or another now that the world knows it has put itself on the block. And I'd have to guess that IBM would figure out, especially in this kind of economy, that JAVA isn't worth any premium at all. The question is whether the board and shareholders will hold a fire sale or if they're delusional enough to just let it go down to zero and sell it for scrap down the road. I'm guessing the fire sale, but that means current shareholders shouldn't imagine anything near $10.

This is a case where I hope I'm wrong.

--QS

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To: QwikSand who wrote (64774)3/24/2009 10:19:06 PM
From: QwikSand
   of 64865
 
Another question is how IBM rationalizes a multi-$B acquisition that includes a gaggle of EWA (Engineers With Attitude) while simultaneously laying off thousands of their own loyal employees.

--QS

is.gd

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To: QwikSand who wrote (64775)3/25/2009 4:20:43 PM
From: QwikSand
   of 64865
 
Dated today 3/25 at around noon EDT.

--QS



Technology Alert
from The Wall Street Journal

IBM is expected to inform a large number of U.S. employees in its global-services unit that their jobs are being eliminated, with some of the work being shifted to IBM employees in India. The planned cuts show that even companies that are successfully navigating the global recession are continuing to slash costs--some of them by taking advantage of cheaper Asian labor.

It couldn't be determined how many people are losing their jobs in the IBM action. IBM typically avoids public disclosure of layoffs, and a spokesman declined comment on the plan.

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To: QwikSand who wrote (64775)3/28/2009 11:54:42 AM
From: Charles Tutt
   of 64865
 
I expect Sun folks to bolt, leaving IBM with little for their money.

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To: Charles Tutt who wrote (64777)3/28/2009 7:38:08 PM
From: Sr K
   of 64865
 
That's what retention bonuses are really for.

IBM has made more than 20 acquisitions since Palmisano became CEO, so yhey'll figure it out before they make an offer.

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To: Charles Tutt who wrote (64777)3/28/2009 11:35:45 PM
From: Elroy
   of 64865
 
I expect Sun folks to bolt, leaving IBM with little for their money.

Sun hasn't grown revenue since 2000. There have been opportunities to take 'early retirement' packages every other year since 2000. How many Sun employees who have the ability to "bolt" remain at the company? At Sun you've got a collection of hangers on who have been sitting in a dying company for almost a decade. I don't think many of them have other opportunities awaiting them, especially in the current employment environment.

IBM will get ~$10 billion in annual revenues and cut costs (Sun staff) to make that revenue profitable. It's sort of like the HWP-CPQ acquisition of 10 years ago.

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