Sun Says Stands by Executive Team
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Sun Microsystems said it stands by its leadership team, led by CEO Jonathan Schwartz, a day after the collapse of talks to sell the high-end server maker to IBM.
Sun (NASDAQ: JAVA) issued the statement on Monday amid speculation that Schwartz could be replaced by Chairman and Co-founder Scott McNealy after deal negotiations with IBM (NYSE: IBM) fell through.
"As a policy Sun does not comment on rumors or speculation. What we can say is that Sun is committed to its leadership team, growth strategy and building value for its shareholders," the company said in a e-mailed statement.
Sun shares tumbled 25 percent on Monday. It rejected a $7 billion buyout bid from IBM, according to a person with knowledge of the matter, leaving the smaller server and software maker vulnerable to lawsuits from shareholders nervous about its viability as a stand-alone company.