Sun CEO: Buyout Rumors Untrue
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Sun CEO Scott McNealy has denied rumors that an investment firm is planning to buyout the software company. According to an article in BusinessWeek on Friday, Sun was planning to take itself private through Silver Lake Partners, the same company that helped Seagate. McNealy said the rumor was part of a scheme to raise the stock price of the company.
"Why would a supposedly credible rag like BusinessWeek quote an anonymous hedge fund guy on a totally unsubstantiated rumor designed to spike the stock price?" McNealy told CNET News.com. While Sun has reversed years of revenue declines as it was hit hard by the tech bust, it has had stagnant revenue and has remained barely profitable since then.