IBM offers $45 per share in Apple buyout?

  • Posted: 15 February 2002 09:34 PM

    From MacSurfer:

    Story Filed: Friday, February 15, 2002 10:19 AM EST

    Feb 15, 2002 (JAGfn.com via COMTEX)—Apple Computer (AAPL) $24.85 - Rumor that (IBM) will make a $45 a share bid for company. Neither company was available for comment.

    Copyright 2002 JAGfn.com All Rights Reserved


    What to make of this?

         
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    Posted: 15 February 2002 09:26 AM #1

    I can think of worse companies to try an absorb Apple…

    But not many. IBM has repeatedly shown poor internal management and co-operation between sectors of its business. Apple could suffer severely from that mismanagement. They also soffer from the old apple “Arrogence” when creating home computers, with price/performance worse than most PC companies, and Apple. It would also be the death of Apple Servers, since IBM has a much more firmly established Linux, IBM-Unix, and WindowsNT based server division. Because of IBM’s wide range of options for hardware and software, there is also the serious possibility of interference with Macintosh development.

    There are some positives however.  Apple could take advantage of the superior IBM components in the systems. Hmm, a company that not only makes the computer, OS and primary applications, but also the Processor, Hard Drives and Memory. Now THAT’S vertical integration! Also, it could potentially lead to business apps (Client side and consumer applications most likely) to be ported to MacOS X, tighter integration with established business systems, and the conversion of IBM Home Computing stores across US and Canada into Apple Stores.

    Unfortunately, all of those would require a fair bit of co-operation between IBM and Apple, something not likey to happen is Steve Jobs’ ego has to answer to IBM stockholders and management. There would also be substantial competition between existing product lines, like NetVista, Aptiva, Thinkpad and IntelliStations with the existing Macintosh Line

    I think this should probably be kept in the perennial Apple Buyout/Merger roumour category. It makes more sense than almost any other buyout rumour, but I think the consequences for Apple would be dire in all but the rosiest of circumstances.

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  • Posted: 15 February 2002 10:40 AM #2

    IBM wouldn’t do this unless they have already worked out a plan with Motorola to take over the G4 & G5 processors with a buy out of the Motorola PPC chip interests. IBM has the Fabs to start cranking out both Apollos and G5’s. They have got to know more about the specs and performance of the G5 than any of the rumor sites and posters on this board. This could be a key to their plans (if any, this is still just a rumor).

    I am an APPL stock holder, and if this rumor gets legs it will be great for my investment. Just a statement by either IBM or Apple concerning this will send APPL soaring. Even if a $45 per share offer is rejected, just the offer itself will rock the stock.

    I never thought I’d say this but - GO BIG BLUE GO!

         
  • Posted: 15 February 2002 09:34 PM #3

    I don’t see an IBM purchase orf Apple. I don’t see Apple approaching shareholders with a $45.00 per share takeover offer from IBM. There’s no reason at this time for Apple to consider being acquired. Management is not under pressure, The stock has been steadily trending up, four solid product groups are winning converts to the platform and the company has the highest gross margins of any major PC maker.

    IBM is in the midst of a change at the helm. It’s not a good time for IBM to consider acquiring a consumer PC company that would require a mammoth effort to inculcate its workforce to the IBM culture.

    I don’t see it. IBM doesn’t need to invest $16 billion in cash or stock outside of its core markets to fuel continued growth.

    It doesn’t make fiscal sense nor do I believe an IBM acquisition of Applet o make common sense at this point in time.