AT&T; Paying $191.8 Million to Raise Sun Micro Share to 14.7%
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MOUNTAIN VIEW, Calif. — Sun Microsystems Inc. said Friday that it has agreed to sell about 4.6 million shares of common stock to American Telephone & Telegraph Co. for $191.8 million.
The sale, when completed, will boost the amount of Sun stock that AT&T; has acquired directly from the Mountain View-based computer company to 14.7%.
New York-based AT&T; had previously bought about 11% of Sun’s stock directly from the company, Sun officials said.
Under a 1988 agreement, Sun can sell newly created shares to AT&T; representing up to 15% of its total shares outstanding.
Under the agreement, AT&T; is also permitted to buy up to an additional 5% of Sun’s common stock in the open market by January, 1991. That would bring its interest in Sun to 20%.
Sun officials said AT&T; had bought additional Sun shares in open market purchases. But they did not have an estimate as to how much.
Sun’s stock closed up 25 cents to $30.75 in New York Stock Exchange trading.
AT&T; officials were not immediately available for comment.
