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eWeek: Sun snaps up Cobalt Networks for $2B

Sep 19, 2000, 16:06 (2 Talkback[s])
(Other stories by Margaret Kane)

[ Thanks to masterfres for this link. ]

"The all-stock deal calls for each share of Cobalt to be exchanged for 0.5 shares of Sun stock. ... That's a decent premium for Cobalt, which closed at 41.13 Monday. Based on Sun's Monday closing price of 115.25, the deal gives investors a 40 percent bump."

"After the merger, Cobalt, whose server appliances run on Linux, will become the server appliance business unit of Sun's Network Service Provider organization, reporting to Executive Vice President John McFarlane."

"The acquisition will "establish [Sun] in the low-end server appliances" market, CEO Ed Zander said in a press release."

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