Feeds

Antitrust-shy IBM closed to fresh Sun talks

Good thing, gone

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

So much for playing hardball: IBM is apparently not interested in resuming talks to purchase Sun Microsystems, following their recent break down.

IBM is believed to be concerned about the level of scrutiny a potential acquisition of its smaller hardware and software rival might would draw from regulators.

CNBC has reported that IBM's contacts within the US Department of Justice and the European Union said an acquisition would spark an antitrust review lasting six to nine months.

It was earlier reported Sun was willing to consider a fresh offer from IBM, at a reduced price. That would be the second cut, after IBM reduced its initial bid from between $10 and $11 to $9.40 a share.

The first round of talks collapsed in April partly because Sun baulked at giving IBM too much control over its projects without getting guarantees the deal would be completed in the face of the inevitable regulatory scrutiny. Also, IBM was unwilling to agree to executive payouts.

IBM knows a thing or two about the cost and delays an antitrust regulation can bring to operations, and what it can do to a company's reputation and performance.

The company spent 13 years locked in a pointless investigation and long-running court battle with the DoJ, which had grown concerned in the 1960s about the company's domination of the market for general-purpose computers.

The DoJ's idea was to break IBM in to smaller companies that would compete with each other. The case was eventually thrown out in 1981, as the computing landscape changed.

The case, though, is believed to have altered IBM's behavior, with the company reluctant to price too competitively during the 1980s and 1990s in case it would again be accused of exploiting its position.

Even today, IBM is facing a regulatory probe over its mainframe business, this time at the hands of the EU's Competition Commission following a complaint by t3 Technologies. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.