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$7bn deal would have regained world top spot for IBM
Shares of Sun Microsystems fell by nearly a quarter early today following reports that IBM had broken off negotiations to buy the company.
Reuters reported "a source" as saying the move came after Sun rejected a slightly reduced offer of $7bn (£4.9bn). Sun has been losing both money and market share but the merger would have allowed IBM to reclaim its position as the world's biggest computer company.
Also Sun has a lot of intellectual property including Java and its Solaris flavour of Unix. It is unclear whether talks will resume.
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