Worry Over Sale Price Hurts Apple
Apple Computer Inc.’s stock fell as much as six percent amid concern that the computer maker will be purchased at a discount to its market value.
Apple’s stock declined 1 1/8 to 29 1/2 in late trading of 2.75 million shares after falling as low as 28 3/4.
Apple isn’t denying that it is negotiating with Sun Microsystems Inc., a leading manufacturer of network computing systems. A story in today’s Wall Street Journal said Sun’s latest offer was in the mid-20s.
“I would hope Apple would not accept a bid in the low 20s,” said Marian Kessler, portfolio manager at Crabbe Huson Group, which owns about 1 million shares of Apple. “They would face a lot of shareholder lawsuits for anything not in the 40s.”