It looks like the Sun won't be shining on IBM after all.
IBM has reportedly withdrawn its bid for Sun Microsystems after Sun's board of directors rejected IBM's formal offer, according to The Wall Street Journal.
Sun's board reportedly believed IBM's offer, about $9.40 per share, was too low, according to the paper. The Journal earlier reported that IBM and Sun had discussed lowering the offer in exchange for sticking with the deal through expected regulatory scrutiny.
The first reports of acquisition talks between the two companies surfaced last month, when IBM put forth an offer that was significantly higher than Sun shares had been trading. On March 18, Sun's shares closed at $8.89, a 79 percent increase, with about 10 times the volume typically sold on a trading day. Sun's shares closed last Friday at $8.49.
IBM's reported decision to back out also comes amid a period when Sun is reorganizing its channels organization and days after the company laid off about 1,500 people.