Oracle-Sun Micro Deal Carries $260M Breakup Fee>JAVA

 

DOW JONES NEWSWIRES

 

Sun Microsystems Inc. (JAVA) said Monday it will have to pay a $260 million termination fee to Oracle Corp. (ORCL) if their proposed merger isn't completed.

The Santa Clara, Calif., vendor of server computers, data storage machines and business software said the payment must be made two business days after the merger agreement is terminated, according to a Securities and Exchange Commission filing

Earlier Monday, Oracle, a supplier of databases and other software, announced a deal to acquire Sun Microsystems for $7.4 billion, or $9.50 a share.

Sun Microsystems shares closed Monday at $9.15 a share, up $2.46, or 36.77%. Shares of Redwood City, Calif.,-based Oracle closed at $18.82 a share, down 24 cents, or 1.26%.

 

-Gee L. Lee, Dow Jones Newswires; 202-862-1346