Oracle buys Sun Microsystems Stock to rise at premium price

Oracle corporation today announced that it would acquire a rival technology company,Sun Microsystem , for $9.50 a share, or about $7.4 billion.

Sun Microsystem didn't go ahead with I.B.M. offer of $9.40 a share from $10. Still, Monday’s deal represented a 42 percent premium over Sun’s closing price of $6.69 on Friday. This should see some drastic movement in sun microsystem stock today. We are expecting the stock to close in the range of $10 ++

The entire oracle sun deal was valued at at $5.6 billion. Oracle said it expected the purchase to add at least 15 cents a share to its adjusted earnings in the first year after the deal closes. Sun shares rose as high as $9.20 in premarket trading after closing Friday at $6.69, which we are expecting to hit $10-12 mark today. Oracle will loose further ground and oracle stock could go low beyond $18-$17 mark.

The only thing which probably the open source industry wouldn't like is Oracle has now taken over the MySQL database, which Sun acquired last year for $1 billion. Lets' just hope MySQL remains a Free DB.