Sun Microsystems Says Shareholders OK Oracle Buy

Sun Microsystems Inc. (JAVA) said Thursday its stockholders had voted in favor of Oracle Corp.'s (ORCL) $7.4 billion takeover.

Sun, the Santa Clara, Calif.-based computer server and software maker, said in a press release 62% of holders of its common stock had voted to accept the agreement at a special meeting at its headquarters. Under the terms of the deal, database maker Oracle will acquire each Sun share for $9.50 in cash.

An Oracle representative wasn't immediately available to comment on the Sun press release.

Stockholder acceptance clears a major hurdle for the deal to progress. But deal closure remains subject to antitrust clearance from the U.S. Justice Department, which in June said it was extending an initial investigation. Oracle has said despite the longer investigation, it expects the deal to close by the end of August.

Oracle has said Java, the programming language which many companies and developers license from Sun, is the focus of the investigation.

The deal, which was announced in April, surprised some technology industry watchers. Redwood City, Calif.-based Oracle, which makes databases and other software for large corporations, hasn't previously had a significant presence in the hardware business. Although many analysts have questioned whether Oracle wants to make servers and storage equipment over the long-term, the company's chief executive, Larry Ellison, has said he is "definitely not going to exit the hardware business."

Sun shares were recently down 3 cents to $9.18 while those of Oracle rose 3 cents to $21.53.

-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455; [e-mail]