Sun Microsystems Says Shareholders OK Oracle Buy
17 July 2009 - 4:32AM
Dow Jones News
Sun Microsystems Inc. (JAVA) said Thursday its stockholders had
voted in favor of Oracle Corp.'s (ORCL) $7.4 billion takeover.
Sun, the Santa Clara, Calif.-based computer server and software
maker, said in a press release 62% of holders of its common stock
had voted to accept the agreement at a special meeting at its
headquarters. Under the terms of the deal, database maker Oracle
will acquire each Sun share for $9.50 in cash.
An Oracle representative wasn't immediately available to comment
on the Sun press release.
Stockholder acceptance clears a major hurdle for the deal to
progress. But deal closure remains subject to antitrust clearance
from the U.S. Justice Department, which in June said it was
extending an initial investigation. Oracle has said despite the
longer investigation, it expects the deal to close by the end of
August.
Oracle has said Java, the programming language which many
companies and developers license from Sun, is the focus of the
investigation.
The deal, which was announced in April, surprised some
technology industry watchers. Redwood City, Calif.-based Oracle,
which makes databases and other software for large corporations,
hasn't previously had a significant presence in the hardware
business. Although many analysts have questioned whether Oracle
wants to make servers and storage equipment over the long-term, the
company's chief executive, Larry Ellison, has said he is
"definitely not going to exit the hardware business."
Sun shares were recently down 3 cents to $9.18 while those of
Oracle rose 3 cents to $21.53.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455;
jessica.hodgson@dowjones.com