Tuesday, April 7, 2009

Tuesday Links......

Investors to Sun: We’ve Got Another Place for You to Put the Dot You Put in Dot-com: IBM threw Sun a rope and the company used it to make a noose. Shares of Sun–which fell nearly 27 percent Monday following the collapse this weekend of merger talks with IBM–are slipping again today on fears that the company has bollixed up what may have been its only chance at salvation.

Certainly, there are no other offers on the horizon. Nor are there likely to be.

Sun could be left facing some unpleasant options. “Sun will have to take alternatives by either splitting up or downsizing"......

Without IBM: Sun's plan B With a potential merger deal with IBM on the ropes, Sun Microsystems may have to face an unpleasant plan B: selling off pieces of itself to attract a suitor.

The leak of the disrupted negotiations between IBM and Sun, as well as talk that Sun went to as many as 20 different possible suitors, has already severely damaged the morale of investors, who sent the stock plummeting 24% on Monday.

Valley Buzz: Sun Blows the IBM Deal: There’s speculation that Scott McNealy, the firebrand founder of Sun who opposed the deal, may be retaking the CEO slot as a result. Having watched Jerry Yang, Michael Dell and other returning founders flounder, I can’t imagine that mollifies upset Sun shareholders. eWeek put things well when it wrote that Sun better have “a solid backup plan.”

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