Apple Exploring Deal With Sony Computer Giant’s Future Remains Cloudy After A Week Of Dramatic Developments

The fate of Apple Computer Inc. remained up in the air Friday and a trade paper reported the company is exploring an alliance or merger with Sony Corp. as well as Sun Microsystems Inc.

But a deal isn’t likely with anyone soon, according to the report by MacWeek on its on-line service. The newspaper quoted unidentified sources it said were familiar with the talks.

“The likely scenario is for Apple to remain independent and pull its own chestnuts out of the fire,” said Mark Hall, editor-in-chief of MacWeek.

Representatives for both Apple and Sony declined comment, citing their corporate policies not to discuss deals until they are complete.

Meanwhile, a week of intense speculation about Apple’s future, centered mostly on reports that Sun was ready to buy it, drew to a close with no deal.

Apple’s stock closed up 37-1/2 cents to $30.62-1/2 on the Nasdaq Stock Market. Sun shares closed down $1.62-1/2 to $42.25, also on Nasdaq.

Rumors about the price Sun was offering, as they had for much of the week, ranged widely from $23 per share, or $2.7 billion, to $33 per share, or $4 billion.

“We have a corporate policy too and we can’t say anything,” said Scott McNealy, chief executive officer for Sun.

The prospect that another company might be interested in Apple pleased some.

“If Apple’s not worth a bidding war, then it truly is the end of Apple and that’s a sad day for all of us,” said Aaron Goldberg, executive vice president of Computer Intelligence Infocorp, a technology market research firm.

Apple has been the subject of takeover speculation for more than 18 months. While its Macintosh computer is highly-regarded, the company has been hurt by high costs, rivals’ price cuts and misjudgment about demand.

Apple last week reported a $69 million fourth-quarter loss and forecast another for the current period. The Cupertino, Calif.-based company has started a restructuring that will eliminate 1,300 of about 14,500 jobs.

Industry observers have said Apple needs help to shoulder the high costs of developing both hardware and software. All of its competitors build IBM-compatible PCs using Intel’s chips and Microsoft Corp.’s Windows software and they share development costs.

Sony is one of several Japanese companies that have previously been mentioned as a possible partner for Apple. Sony announced two months ago that it would get into the PC business this fall with IBM-compatible models.

MacWeek’s Hall said people shouldn’t hold their breath waiting for a deal involving Apple.

“We don’t believe a deal is imminent,” he said. “And we believe … the prevailing thinking inside Apple right now is to remain independent.”