Sun Microsystems Inc is doing so much in so many directions these days that the company has to keep running home to mother for more pocket money. Under its agreement with Sun, AT&T has to buy up to 15% of Sun’s enlarged equity at a 25% premium to the market price, and may take its stake to 20% all told by buying in the market as well. This time, Sun plans to issue 883,402 shares to AT&T, representing 2.3% of the enlarged equity, bringing in $41.9m, to be used for working capital and to increase its capital base. Once the deal is complete Sun is not permitted to ask for more for 90 days.
Content from our partners
