Barbarians at the Server

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KKR announced its plans to put $700mm into Sun Microsystems today. The buyout firm is placing the investment in two tranches of convertible debt and will receive a board seat. Sun shares are currently up over 8% and edging closer to the KKR convertible strike price of $7.21. This deal is part of the growing tide of speculation regarding private equity investments in tech, which usually result in non-control positions for buyout firms.
Sun released earnings yesterday, posting its first positive EPS since mid 2005, and a 7% jump in revenue. Both figures cocksmacked analyst forcasts by a slight margin. Sun has $3.5bn of cash and marketable securities and is cash flow positive.
KKR puts faith in Sun's rise with $700m deal – [MSNBC]

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