One of the world’s biggest technology companies, IBM, is understood to be in talks to buy Sun Microsystems, and is offering US$6.5bn.
According to a report this morning in the Wall Street Journal, the deal would bolster IBM’s computer server products against rivals such as Hewlett-Packard (HP).
The US$6.5bn offer from IBM would represent a premium of 100pc over Sun’s closing price yesterday of US$4.97 a share.
It is understood that in recent months Sun has been approaching a number of technology companies in the hope of being acquired.
In November, Sun’s board of directors approved a restructuring plan aimed at reducing costs by US$700m to US$800m each year.
The plan includes a reduction of 5,000 to 6,000 workers, which represents between 15pc and 16pc of the company’s global workforce.
Sun ranks alongside Dell, IBM, Fujitsu Siemens Computers and HP as one of the world’s major server manufacturers, which power corporate and government IT systems.
By John Kennedy
Pictured: inside the Sun Microsystems Black Box, a free-standing networking centre created by Sun Microsystems
Image courtesy of the SLAC National Accelerator Laboratory