Update: The short version is, the deal is not taking place anymore. The long version can be read at the NY Times. Hopefully we won't have to update later on today to reverse the story, again.

Rumors of IBM taking over Sun Microsystems have intensified over the last 24 hours after more details and supposed confirmations arose regarding the deal that could be announced as soon as today, according to various sources.

IBM would pay $9.55 a share for Sun or about $7 billion total, slightly below a previous bid of $10 a share. At this price, Sun would be receiving almost a 100 percent premium over its valuation a month ago, before takeover talks became apparent. Sun, a veteran in computer servers and high-end workstations, has been looking for a buyer for at least a year. For many, IBM is one of a handful of deep pocketed companies that could extremely benefit from the purchase. The NY Times recently reported that IBM's board has already approved the deal.

The merger between these two IT giants would have its biggest impact in the Unix server market, estimated at $17 billion a year, of which the combined company would control some 65 percent, raising antitrust concerns.