Sun Sort of Holds Up Despite EC Protest (JAVA, ORCL, IBM)

Posted in pre-market 
November 10th, 2009

Sun Microsystems Inc. (NASDAQ: JAVA) and its $9.50 per share buyout by Oracle Corp. (NASDAQ: ORCL) may be further in jeopardy after the Europeans have now officially voiced some concern over the deal.  The EC believes that this combined company will have too much market share in the MySQL server software industry. This is a weasel call, but shares are trading around the news.  Sun’s shares are actually only down $0.03 at $8.21 in pre-market trading as of 8:45 AM EST and we have already seen over 2.5 million shares trade hands. If this deal gets blocked, it seems very likely that Sun holders will get caught holding the bag.  While this is down today it seems to be holding up much better than the implied downside as this was a $5.00 stock before IBM (NYSE: IBM) was interested and before Oracle stepped in.

JON OGG

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