IBM Lowers Sun Takeover Bid

Reports are circulating today that IBM Corp.(IBM) has lowered its per-share takeover price of Sun Microsystems Inc.(JAVA)

The deal now is worth about $9.50 per share, according to various media outlets. That puts the value of the transaction at around $7 billion.

Sun has little choice but to accept the offer. The company – whose server and cloud computing strategies will mesh well with those of IBM – only has IBM as a suitor. Still, that overlap will not serve employees well, according to reports. Up to 10,000 people stand to lose their jobs, mostly on the Sun side, as the companies integrate.

Both companies’ stocks were trading higher mid-morning on Friday.