Oracle to buy Sun

ORACLE has made a play for Sun Microsystems to the tune of around $US7 billion or $US9.50 per share in cash.

Talks between IBM and Sun reportedly fell apart after it was reported that IBM withdrew a $US7 billion offer for the high-tech computing firm a few weeks ago after Sun rejected a bid of up to $USS9.40 per share as too low.

Oracle said the proposed merger is subject to Sun stockholder approval, certain regulatory approvals and customary closing conditions.

"Until the deal closes, each company will continue to operate independently, and it is business as usual," Oracle said.

"The acquisition combines best-in-class enterprise software and mission-critical computing systems."