This just in from the Wall Street Journal:
"IBM has cut its takeover bid for Sun Microsystems to between $9 and $10 a share. Sun has agreed to a lower price in return for commitments from IBM that it will stick with the deal in the event of intense regulatory scrutiny."
I figured when Sun began doing major lay-offs that was also part of the deal they struck. IBM probably didn't want to inherit a bunch of people they would immediately need to lay-off. This deal is probably the best that can be expected during these gloomy times. The good news for customers is that their investments in Sun technology will be protected.
I still believe that this deal has been triggered by the sudden appetite for Cloud Computing.