Report: IBM is in talks to buy Sun Microsystems

IBM is in talks to buy Sun Microsystems for as much as US$6.5 billion, the Wall Street Journal reported Wednesday.

Global technology giant IBM is in talks to buy Sun Microsystems in a deal that would expand its server market share, the Wall Street Journal reported Wednesday.

IBM may pay as much as US$6.5 billion in cash for Sun, the newspaper reported on its Web site, without naming its sources. That amount of money would be nearly double Sun's closing share price on Tuesday of $4.97 per share.

The report cautioned that while the two companies are holding discussions, a transaction may not occur.

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