Stocks in the news: Sun Microsystems, Coca-Cola, General Mills

Updated

International Business Machines (IBM) is in talks to buy Sun Microsystems Inc. (JAVA) according to Wall Street Journal sources. The reported deal is for $6.5 billion, a premium of about 100 percent over Sun's closing price Tuesday of $4.97 a share. The deal could bolster Big Blue's computer server products against rivals such as Hewlett-Packard Co. (HPQ). IBM shares are down 3.2 percent in premarket trade, JAVA's up over 68 percent, HPQ down 1.2 percent.

American International Group's (AIG) CEO Liddy will have to answer to a congressional committee regarding bonuses paid to employees for an overall sum of some $200 million. AIG received a government bailout of $140 billion. Liddy himself is not getting a bonus and has to defend a policy he didn't initiate. AIG shares are up over 4 percent in premarket trade.

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