Sun Micro to Ask Shareholders for Reverse Stock Split


Sun Microsystems plans to ask stockholders to approve a one-for-four reverse stock split at its annual meeting on Nov. 8, according to a filing.

As a result, Sun would have one-fourth as many outstanding shares, but each share would be worth about four times as much, the company said in a filing with the U.S. Securities and Exchange Commission.

Sun shares closed on Nasdaq.

"The anticipated increase in our stock price resulting from the reverse stock split could return our stock price to a level that we believe is more consistent with other major, widely held companies," Sun said.

The reverse split is also anticipated to reduce stockholder transaction costs, the company said.

Sun said the reverse stock split would not have any impact on its stock repurchase program.