IBM is understood to be in talks to buy Sun Microsystems, with a deal possible as early as the end of the week.
Sources speaking to the Wall Street Journal said that negotiations between the two firms could still fall through, but that IBM was the firm with the most synergies with the vendor. It had reportedly approached HP and Dell in the past, but both are understood to have declined the approach.
If the deal does complete, it is thought IBM would pay around $6.5bn (£4.59bn) for Sun.