U.S. stocks review: Sun hardware business Destiny has been set

"MarketWatch San Francisco, May 19" We must admit that, at the beginning of the story, Oracle, the Silicon Valley software giant, is not interested in Sun's hardware business at all. If you read the proxy filings filed by Sun (JAVA) last week, you will find that this is actually a cross-cutting theme.　　The document reveals more details about how the troubled system and software companies started selling themselves late last year. "." In this effort, Sun hired Credit Suisse to help itself, but the broker did not play much of a role in the 5.6 billion-dollar deal with Oracle (ORCL).　　Crucially, it was the friendship between Sun Chairman Maikenili Scott McNealy and Oracle's chief executive, Ellison Ellison, who contacted Ellison in February to determine whether there was a "possible deal". It did ignite a little spark in Ellison's mind, but the spark was not as bright as Maikenili hoped. A few weeks later, on March 12, Oracle sent a letter to Sun's board proposing to buy some software assets.　　Oracle also discussed the issue of buying Sun minority equity investments and further establishing a strategic partnership. The idea is not enough to make Sun happy because they are looking for a buyer for the entire business.　　As a result, Sun did not stop contacting other parties. The "B" document also gave more exposure to details of the merger and negotiation between Sun, Oracle and rival IBM (IBM), explaining why negotiations with IBM would end in miscarriage.　　There is also a very surprising and interesting detail, which is the existence of another possible buyer, in the document, it is only marked as "B party." Many analysts believe that this b is not someone else, but Hewlett-Packard (HPQ), although the document does not provide any substantive clues. The document shows that party B's management team was earlier--and perhaps even as early as last November--that such a deal "is not the best time for B in the near future".　　In fact, even now, HP is still digesting their biggest acquisition to date, service giant eds. Eventually, Oracle stood out, but their offer was significantly lower than IBM's initial offer. IBM ended up in a miscarriage of negotiations, and later lowered the offer.　　The paper explains that the reason the deal is aborted is because the "real" problem means that the deal is bound to be challenged by management, which IBM may not be willing to face.　　For some time, some people on Wall Street have been talking about Oracle's foray into Low-margin hardware business. "Strategically, we think the deal is going too far for Oracle," he said. "Bernstein Researc"Oracle has been advocating hardware consolidation, which is clearly not in tune with a deal to buy a UNIX server seller," Toni Sacconaghi, analyst Sacconaghi, said after Oracle's acquisition of Sun in late April. "From the initial standpoint, Oracle probably didn't really want to keep Sun's hardware business." Some now believe Oracle will quickly sell the Sun's hardware department after the deal is over.　　If this does not happen quickly, Sun's hardware business will be faced with huge variables that will drain their customers. "The longer they keep the department, the lower the value will be." "IBM and HP are going to carve out their customers," said Rob Enderle, an analyst at Enderle Group.　　Andrew revealed that he had contacted some of Sun's former management members last week, and he now believes Oracle is sure to sell the Sun's hardware department. Oracle may not sell it to IBM. Andrew added, "If they had a choice, they would obviously be more willing to choose HP, Dell or Lenovo."　　"Oracle now has a relationship with Hewlett-Packard, for example, they are working together to develop a database product that uses a joint brand." Oracle has said they will keep Sun's hardware business. But if the deal is approved by shareholders, Oracle's quick change of stance will not be surprising. Indeed, Oracle now has some shareholders who are dissatisfied with the deal, saying it is inappropriate. More importantly, given Sun's current financial position, they may also be applauded.