IBM Sun saga: Sun’s stock tumbles as things get confrontational!

WSJ was the one’s who started off with this buzz. Some are already speculating and asking if someone should go to jail for starting all this up and for having done the following:

- First helping Sun sky-rocket the stock price to more than 80%
- Then make everyone else fight in all sorts of camps as to Sun should or shouldn’t go to IBM
- Making customers nervous
- screwing up Sun’s future..yet again [at least previously we could blame a Sun employee for doing so]
- Dropping Sun’s stock and making stuff volatile [as if we weren't shaken up already by the economic craposphere]

Sun’s board is split over whether to do the deal, with a faction led by Sun’s chairman and co-founder, Scott McNealy, opposing the transaction and a group led by Chief Executive Jonathan Schwartz in favor, said two people familiar with the talks. While the price of IBM’s offer remained unclear — some placed it at $9.10 a share, others at $9.40 — some people familiar with the talks say price wasn’t the biggest issue.

The news sent Sun shares down $2.31, or 27.2%, to $6.18 in premarket trading Monday.

Sun argued that the offer gave IBM too much “optionality,” or leeway to walk away from the deal, according to one person familiar with the talks. IBM believed that under the proposed framework, it would be fully committing to a deal.

Late-stage deal negotiations are often full of brinkmanship, and it’s possible the two sides are hardening their positions only to strike a full deal in the near future. But for now the stance is confrontational.

WSJ

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